BY: Chronic Staff | Recent News | August 13, 2021
Senators Chuck Schumer and Cory Booker introduced
Legislation that would remove marijuana from the list of controlled substances.
In effect, if this new legislation is successful in Congress, the US stock exchanges would no longer shun the nation’s homegrown cannabis industry that fled companies north for pot-friendly capital markets.
Stock exchanges, banks, and other financial institutions avoid doing business with US marijuana companies in large part due to anti-money laundering laws that criminalize financial transactions connected to illegal activities. A legislative change may help cannabis companies to go public in the US, whether by giving banks leeway or making it legal status
A bill introduced by Senate Majority Leader Chuck Schumer would remove cannabis from the Controlled Substances Act, a process known as descheduling.
Lawmakers would open the door to a host of financial services long-awaited by the industry. Although like any legislative effort, we cannot foresee the future and major impact. However, effects on US IPOs are not lost on investors.
The SAFE Banking Act, which passed a House vote in April, would allow banks to do business with cannabis companies without running afoul of anti-money laundering laws.
US stock markets are hesitant for legal reasons. Descheduling marijuana can open up other sources of investment as investors will be given more confidence.