Advocates Want Senators To Give Weed Stocks Ability To List On Major U.S. Stock Exchanges

A coalition of marijuana advocacy groups, known as SAFE Banking for Equity is demanding a leap forward in the cannabis industry.

They are urging senators to expand financial inclusion and a rightful place for cannabis businesses on senior U.S. stock exchanges. Their mission is clear: unleash a financial revolution that will break barriers and unlock the true potential of the cannabis industry. How?

Marijuana Moment reported that SAFE Banking for Equity sent a letter sent to the Senate Banking Committee seeking their urgent attention to the financial barriers facing the cannabis industry.

Though the group supports the Secure and Fair Enforcement (SAFE) Banking Act, their goal is to include the industry in all banking services including the stock market.

The SAFE Banking Act seeks to protect banks that work with state-licensed marijuana businesses from federal penalties.

The coalition advocates for a broader safety net that will give the cannabis industry access to “all regulated financial institutions and services, including depository services, lenders, debt and equity financing, capital markets and investment services, insurance, broker-dealers, fiduciaries, and credit card and payment processing.”

According to the letter, equal access to financial institutions is crucial for economic growth in the state-legal cannabis industry while limited access hinders entrepreneurs from securing funding to launch and expand their businesses.

• Limited access to financial services puts cannabis operators in a vulnerable position, battling against the illicit market, including Chinese-backed investors. 
• Insufficient capital for small and minority-owned cannabis companies could lead to the dominance of criminal enterprises that disregard testing standards, labeling requirements, child-resistant packaging, age restrictions, taxes, and community investments, posing risks to legal businesses and public health and safety.
• Access to senior U.S. exchanges, says the group, would substantially increase the value of small marijuana businesses, reducing the amount of equity entrepreneurs need to relinquish for investments.
• Maintaining equity is crucial for operators with social equity licenses, but without access to meaningful capital, converting these licenses or achieving success for minority operators becomes challenging, hindering the objective of creating a more equitable industry, per the letter.

Image by Shutterstock // Edited by Benzinga