Wall Street Analysts await Cannabis Banking Vote in Congress This Week

Wall Street Analysts await Cannabis Banking Vote in Congress This Week

FLASH: The House is likely to pass the bill, but there is a less-than-25% chance cannabis legislation becomes law.

Wall Street analysts are keeping a close watch on a House committee vote scheduled Tuesday on a bill to get cannabis industry cash off the streets and into bank accounts. Called the ‘SAFE Act,’ the measure would allow banks to service cannabis companies that comply with state laws.

The vote is likely to come on 26 March and the measure will probably pass, analysts say, even though some Republicans have raised questions about measures designed to prevent money laundering and ensure compliance with bank secrecy laws

If the SAFE Act moves out of the House on a party line vote, then the pressure for the Senate to permit the measure to get added to another bill will be much less, and the prospects for enactment of pro-cannabis legislation will fall.

The committee and the full House are likely to pass the bill. But, there iss a less-than-25% chance cannabis legislation becomes law, as there’s no consensus among Republican Senators.

Senate Majority Leader Mitch McConnell is highly unlikely to vote on any bill that divides the caucus, including cannabis legislation.

Most publicly-traded banks will continue to avoid marijuana-related activities until the drug is legalized at the federal level, it must comply with nationwide laws.

Cannabis-related ETF ETFMG Alternative Harvest, ticker MJ, was down as much as 4.6% in Friday trading, BI’s global cannabis index fell as much as 3.1%.

HeffX-LTN’s overall outlook on the cannabis industry is Neutral.

Have a terrific week

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