US pot stocks reacted favorably Thursday morning following approval of the Secure and Fair Enforcement Banking Act of 2019 (SAFE Banking Act), which will allow big US banks to provide cannabis companies that have been legalized at the state level with banking services and protect them from federal regulatory penalties.
After a three-day meeting, the House Financial Services Committee voted 45 to 15 in favor of the SAFE Banking Act, causing US pot stocks to rise after a difficult week in the market. Prior to the news of the congressional approval, companies listed on the United States Marijuana Index were mainly in the red.
US Pot Stocks Rebound Following Approval
As mentioned, a number of US pot stocks reacted favorably following the news.
The top percentage gainers on the US Marijuana Index on Thursday include Green Thumb Industries Inc (OTCQX:GTBIF), which increased by $0.99 (+7.36%) to $14.85 USD by 12:30 pm EST; Planet 13 Holdings (OTCQB:PLNHF), which was up 3.4% at $1.58 USD; Marijuana Company of America Inc. (OTC:MCOA) increased by 4.31% to $0.016 USD; KushCo Holdings Inc (OTCQB:KSHB) hit $5.77, up $0.18 (+3.22%); and Charlotte's Web Holdings (OTCQX:CWBHF) increased to $20.16, up $0.67 (+3.42%).
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Approval Could Lead to Further Marijuana Reforms
Although the SAFE Banking Act still needs to go to the House floor for action, the number of supporters for the bill is encouraging as they account for one-third of the entire House and represent a lot more support than any other standalone cannabis bill has ever received.
Cannabis reform advocates hope the committee approval will lead to broader marijuana reforms. In fact, House Rules Committee Chairman James McGovern said that he expects the chamber to vote on legislation to end federal marijuana prohibition “in a relatively short time, within the next several weeks, and I think we will have a very strong vote.”
All of the major 2020 presidential candidates in the Democratic party now officially support outright marijuana legalization, as do a majority of American voters, which would mean huge things for US pot stocks in the coming future.
Featured Image: Pixabay
