Curaleaf stock is up nearly 3.5% today following the passage of the SAFE Banking Act in the US House of Representatives on Wednesday.
Landmark Step Forward for Cannabis Industry
In what is considered a landmark step forward for the cannabis industry in the United States, the House of Representatives voted overwhelmingly in favor of the Secure And Fair Enforcement (SAFE) Banking Act, which will protect banks when working with cannabis companies and pave the way for substantial growth in the industry. Curaleaf Holdings Inc (CSE:CURA) (OTCQX:CURLF) looks set to be one of the major beneficiaries of this act, and this has been reflected by the rise in Curaleaf stock today.
“The historic passage of the SAFE Banking Act by the U.S. House of Representatives is an important first step in the process toward normalizing the cannabis industry’s ability to transact. If ratified, the bill will increase the safety of our operations for our patients, customers and employees by reducing the reliance on cash and promoting transparency […] In addition to normalizing the industry, the bill also provides more access to capital for cannabis businesses of all sizes, which will support social equity in our industry,” said Curaleaf CEO Joseph Lusardi.
Curaleaf Stock Up Following Company Statement
While the SAFE Banking Act eased through the House by a margin of 321-103, the Act most likely will not become law before the end of 2019 as it faces the even more difficult task of getting through the Republican-controlled Senate. Under current legislation, banks and credit unions could face prosecution for offering their services to cannabis companies under rules enacted in line with the War on Drugs. This has resulted in many major cannabis firms dealing strictly in cash. Curaleaf shares are currently valued at $6.62 following the news.
Top Spender on Lobbying
It was reported earlier this month that Curaleaf Holdings was the US cannabis industry’s top spender on lobbying activities, and so it is hardly surprising to see the company’s CEO issue a statement praising the passage of the Act, as well as the positive impact it has had on Curaleaf stock. The company spent over $400,000 USD on lobbying this year, which went as far as the Office of the President, and thus activities appear to be yielding dividends.
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