The American cannabis industry recently earned another victory.
And it takes the country one step closer to a real change at the federal level.
Last week, the U.S. House of Representatives overwhelmingly passed the Secure and Fair Enforcement (SAFE) Banking Act.
The bill would enable banks and other financial institutions to provide cannabis companies with the same services every other industry in this country enjoys – without the fear of federal persecution.
This was a lopsided victory for cannabis, with the House voting 321-101. And maybe even more importantly, more than half of House Republicans voted in support of the SAFE Banking Act.
This tally was very similar to when the SAFE Banking Act cleared the House in 2019 with a 321-103 vote. But the Senate at the time stalled the measure.
This time, though, the prospects are far better… and investors should be sitting up and taking notice.
The “Secret” of This Confidential Bill
Democrats have the majority in both the House and the Senate.
So the possibility of the SAFE Banking Act clearing this next hurdle is much stronger than it was in the past.
But there’s another layer to this story.
Not only is the SAFE Banking Act chugging along, but Senate Majority Leader Chuck Schumer, Sen. Cory Booker and Sen. Ron Wyden are crafting their own comprehensive cannabis reform bill.
Now, for whatever reason, the details of this bill are confidential at the moment. And there’s no timeline for when the trio’s legislation will be introduced. But they have been seeking input from the National Cannabis Industry Association and other similar groups.
They also plan to move ahead with legalization, with or without President Joe Biden.
But here’s what I think we can likely expect from the Senate.
Schumer, Booker and Wyden each introduced a cannabis reform bill in the last legislative session. Schumer had the Marijuana Freedom and Opportunity Act, Booker introduced the Marijuana Justice Act, and Wyden introduced the Marijuana Revenue and Regulation Act.
It’s likely that the bill they’re currently working on together is a combination of the three.
Now, as I’ve stated before, I believe Congress will be making a change at the federal level this year and, at the very least, will alter the scheduling of cannabis in the Controlled Substances Act. That includes descheduling or rescheduling it to a much lower level.
Well, all three of the senators’ previous reform bills were specifically about removing cannabis from this act.
So it’s hard not to imagine their current confidential cannabis bill will look to do the same. And that would create a windfall for American cannabis companies!
The Winds of Change
The takeaway here is this…
A change at the federal level is coming.
The House once again passing the SAFE Banking Act is a boon for the cannabis industry. And unlike its last trek through Congress, this time the bill has no obstacles standing in its way.
There is bipartisan support for the cannabis industry to have access to the financial services that every other industry in this country enjoys. And this time, the Senate will be given the chance to vote on the bill.
At the same time, Senate leadership is looking to make a major change at the federal level. That very likely means removing cannabis from the Controlled Substances Act.
This makes legalization a very real possibility. The walls of prohibition are finally starting to crumble.
A change is coming. And I’m not talking about some far-off “someday”…
I’m talking months and maybe weeks.
This is the moment cannabis investors have been waiting for. Once that change takes place, the floodgates will open for cannabis companies and all of us who have been patiently waiting will be rewarded.
Here’s to high returns,
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