US cannabis shares have recovered this week, as the industry had the chance to voice their frustrations about a lack access to banking in front of the Senate.
Yesterday, the Committee on Banking, Housing and Urban Affairs met in an open session to discuss the ‘real impacts of debanking in America.’
Lack of banking access has been a significant obstacle to cannabis business across the nation for many years. The SAFER Banking Act, which was first introduced in 2007, is still struggling to pass after almost a decade.
Debanking marijuana poses a threat to physical stores that are forced to keep cash on hand, restricts access to institutional funding and capital, and creates a host of issues for cannabis operators. This was brought up by participants from both sides of politics.
The financial sector experts and lawmakers from both sides of the aisle have pointed out that cannabis businesses are having difficulty obtaining bank services despite being legal under state law.
During the hearing, Sen. Elizabeth Warren (D-MA) urged further investigation into the issue, arguing that it ‘shouldn’t be happening’.
Jack Reed (D-RI), Thom Tillis, (R-NC) and other senators have acknowledged that there is a regulatory gap between federal and state law. Tillis suggested that federal reform of cannabis laws may be needed to solve the banking problem.
Aaron Klein of the Brookings Institution noted the cost to banks in complying with regulations. He said that by 2023 the amount of reports on suspicious activities (SARs), filed by institutions, would reach 2.5 million, rendering it economically unfeasible for most banks to serve cannabis businesses.
Klein suggested the SAFER Banking Act which provides legal protections for banks working with marijuana businesses has been in Congress for many years. However, Klein also said the act alone might not be sufficient to fix the problem.
He advised pairing this with SAR Reform to reduce the compliance burdens on banks. JPMorgan Chase and other financial institutions have said they are open to collaborating with cannabis companies if federal regulation allows it. Industry advocates, however, continue to press for solutions to end cannabis operators’ reliance on only cash transactions. This increases the risk of fraud, theft, money laundering, etc.
US cannabis stocks rose in response to the hearing. Cresco Labs Inc. (+14.2%), Curaleaf Holdings Inc. (+10.7%), and Trulieve Cannabis Corp. (+1%) all saw their shares rise.
Cannabis ETFs also moved along with the broader rally. Amplify Seymour Cannabis ETF CNBS (CNBS), and AdvisorShares Pure U.S. Cannabis ETF MSOS (MSOS), both gained 4.3%.
Aurora Cannabis, as reported today, was the standout performer today on the stockmarket, thanks to its Q3 record-breaking results. The company’s shares rose 40%.
Aurora’s rally had a positive impact on other Canadian cannabis companies, such as Canopy Growth Corp. (up 22.2%), Tilray Brands Inc. (up 7%) and Cronos group Inc. (10.1%).
US cannabis shares have recovered this week, as the industry had the chance to voice their frustrations about a lack access to banking in front of the Senate.
Yesterday, the Committee on Banking, Housing and Urban Affairs met in an open session to discuss the ‘real impacts of debanking in America.’
After nearly a ten-year struggle, the SAFER Banking Act is yet to pass.
Debanking marijuana poses a threat to physical stores that are forced to keep cash on hand, restricts access to institutional funding and capital, and creates a host of issues for cannabis operators. This was brought up by participants from both sides of politics.
The financial sector experts and lawmakers from both sides of the aisle have pointed out that cannabis businesses are having difficulty securing services despite being legal under state law.
During the hearing, Sen. Elizabeth Warren (D-MA) urged further investigation into the issue, arguing that it ‘shouldn’t be happening’.
Jack Reed, D-RI, and Thom Tillis R-NC, both senators, acknowledged the gap in regulation between state-level and federal laws. Tillis even suggested that an enlarged federal marijuana reform could be required to fix the banking crisis.
Aaron Klein, senior fellow at Brookings Institution and a Brookings Institution Fellow, noted that the number of suspicious activity reports filed by banks has risen to 2,5 million by 2023. This makes it unprofitable for banks to provide services to cannabis businesses.
Klein commented that even though the SAFER Banking Act – which provides legal protections for banks working with marijuana businesses – has been in Congress for many years, it may not have enough power to resolve the issue.
He advised pairing this with SAR Reform to reduce the compliance burdens on banks. JPMorgan Chase and other financial institutions have said they are open to working together with cannabis businesses, if federal regulation allows it. Industry advocates, however, continue to press for solutions to end cannabis operators’ reliance on only cash transactions. This increases the risk of fraud, theft, money laundering, etc.
US cannabis stocks rose in response to the hearing. Cresco Labs Inc. (+14.2%), Curaleaf Holdings Inc. (+10.7%), and Trulieve Cannabis Corp. (+12%) were all on the rise.
Cannabis ETFs also moved along with the broader rally. Amplify Seymour Cannabis ETF CNBS (CNBS), and AdvisorShares Pure U.S. Cannabis ETF MSOS (MSOS), both gained 4.3%.
Aurora Cannabis, as reported today, was the standout performer today on the stockmarket, thanks to its Q3 record-breaking results. The company’s shares rose 40%.
Aurora’s rally had a positive impact on other Canadian cannabis companies, such as Canopy Growth Corp. (up 22.2%), Tilray Brands Inc. (up 7%), and Cronos group Inc. (10.1%).
Cannabis Law Resources for Poland
Browse essential legal pages on cannabis sales and cultivation in Poland. You can use these resources to learn about the requirements for certification, permissions and compliance.
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Polish News Registration and Interests of Cannabis Businesses
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Permissions for Cannabis Sales in Poland
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Authorization for Importing or Manufacturing Medical Products
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Permission for Manufacturing or Importing Medical Products
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Certificate of Good Manufacturing Practices (GMP)
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Registration of Medical Products in Poland