Poll Shows Public Support for Cannabis Businesses' Access to U.S. Financial System
A recent survey conducted by Morning Consult for the Independent Community Bankers of America revealed that a majority of Americans believe that legalizing cannabis businesses' access to the U.S. financial system would enhance public safety. The poll found that 64% of respondents agree that the SAFER Banking Act would improve safety, and 54% believe it would aid underserved communities. The Independent Community Bankers of America supports a law that would provide a "safe harbor" from federal sanctions for banks working with cannabis-related businesses, even though they don't advocate for marijuana legalization. Multi-state operators and Cannabis ETFs, such as Ascend Wellness, Curaleaf Holdings, AdvisorShares Pure Cannabis ETF (YOLO), and ETFMG Alternative Harvest ETF (MJ), could benefit from such a law.
Key Takeaways
- A majority of Americans believe legislation for cannabis businesses to access the U.S. financial system would benefit public safety.
- The SAFE Banking Act could improve public safety and help underserved communities.
- ICBA advocates for a "safe harbor" from federal sanctions for banks dealing with cannabis-related businesses.
- Multi-state operators and Cannabis ETFs could benefit from this proposed legislation.
- Companies that could benefit include Ascend Wellness, Curaleaf Holdings, Cresco Labs, Green Thumb Industries, Trulieve Cannabis, Ayr Wellness, Verano Holdings, and Jushi Holdings.
- Cannabis ETFs like AdvisorShares Pure Cannabis ETF (YOLO), ETFMG Alternative Harvest ETF (MJ), and Amplify Seymour Cannabis ETF (CNBS) could also see positive impacts.
Analysis
The push for cannabis businesses to access the U.S. financial system could improve public safety and support underserved communities, with 64% of Americans in favor according to a Morning Consult poll. The SAFE Banking Act, backed by the Independent Community Bankers of America (ICBA), would provide a "safe harbor" from federal sanctions for banks working with cannabis-related businesses. This could benefit multi-state operators like Ascend Wellness, Curaleaf Holdings, and Cresco Labs, as well as Cannabis ETFs such as YOLO, MJ, and CNBS. Indirectly, this could also boost the economy of states where cannabis is legal and promote social equity in the industry. However, potential consequences may include increased competition for smaller players and increased regulatory scrutiny.
Did You Know?
- SAFE Banking Act: The Secure and Fair Enforcement (SAFE) Banking Act is a proposed U.S. federal legislation that would provide a "safe harbor" for financial institutions that work with cannabis-related businesses. It aims to address public safety concerns and provide access to financial services for the cannabis industry.
- Cannabis ETFs: These are investment funds that focus on the cannabis industry, investing in companies involved in marijuana cultivation, processing, distribution, and retail.
- Multi-state operators (MSOs): These are cannabis companies that operate in multiple states, often having a presence in both medical and recreational marijuana markets.