Cannabis stocks experienced a boost on Wednesday following the approval of the Secure and Fair Enforcement Regulation Banking Act by the U.S. Senate Committee on Banking, Housing, and Urban Affairs. The bill, now known as the SAFER Banking Act of 2023, aims to open up the financial system to legal cannabis companies. This momentous development marks a significant step forward for the decade-old bill, which has been previously introduced on Capitol Hill. While it has been approved multiple times by the U.S. House of Representatives, it is now set to go before the full Senate for a crucial vote.
Shortly after the committee’s decision, the AdvisorShares Pure US Cannabis ETF (MSOS) experienced an increase of 6% in trades. The ETFMG Alternative Harvest ETF (MJ) also witnessed a rise of 3.2%. In terms of individual cannabis companies, Curaleaf Holdings Inc. (CURLF) surged by 5.4%, Green Thumb Industries Inc. (GTBIF) saw a 1% increase, Cresco Labs Inc. (CRLBF) rose by 1%, Trulieve Cannabis Corp. (TCNNF) experienced a 6.08% surge, Tilray Brands Inc. (TLRY) grew by 2.1%, Canopy Growth Corp. (CGC) climbed 5.1%, and Verano Holdings Corp. (VRNOF) strengthened by 3.8%.
This pivotal decision by the U.S. Senate Committee brings renewed hope to the cannabis industry and highlights the potential for further growth and investment opportunities. As the bill heads to the full Senate, industry participants eagerly await its final outcome with anticipation.