Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF) is reportedly the top spender on federal cannabis lobbying, but will it help Curaleaf stock?
Cannabis Lobbying Hits $2 Million USD
The US cannabis industry as a whole has spent a reported $2 million USD this year in lobbying for federal cannabis reform in Washington DC. Curaleaf Holdings has contributed approximately $400,000 USD to lobbying activities, making it the biggest spender among cannabis companies towards the cause. The only group to outspend Cureleaf was the Cannabis Trade Federation (CTF), a national coalition of cannabis-related businesses, which spent $482,500. Curaleaf stock is currently up 2% to $7.90.
SAFE Banking Act Could Boost Curaleaf Stock
Curaleaf’s lobbying activities have been centered on the SAFE Banking Act of 2019, STATES Act, and RAISE Family Caregivers Act. The SAFE Banking Act is perhaps the most important for allowing cannabis companies to develop as it allows for banks to serve state-legal cannabis businesses without fear of federal punishment. The American Bankers Association predicts that the legislation will be passed no later than next month and should help boost Curaleaf stock, and most pot stocks, by providing a more secure financial framework.
According to government filings, Curaleaf’s lobbying went as high as the Executive Office of the President, between which two meetings were held. President Trump has been quite opaque in his stance on cannabis legislation, emphasizing that it is a state-by-state issue. Last month, we looked at the 2020 Presidential Candidate’s stance on cannabis legislation, which indicated that the Trump Administration has done little to advance cannabis legislation, and so his reelection may not have a favorable outcome for Curaleaf stock or the market at large.
Curaleaf’s Chairman is Pot’s First Billionaire
Meanwhile, it has emerged that Curaleaf’s Chairman, Boris Jordan, has become the only cannabis billionaire after Forbes Russia reported his net worth to be at $1.1 billion USD. Jordan owns 31% of Curaleaf shares as well as being the founder of Measure 8 Ventures, a cannabis investment firm. Jordan has big ambitions for Curaleaf Holdings, the sixth-largest pot company by market cap in the US, which he describes as the Starbucks of cannabis.
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