Did The Senate Hit Snooze On Cannabis Banking Reform? Report Indicates It Will Be Pushed To September

It was another lazy summer session for cannabis stocks when Don Murphy tweeted…

Time to make early vacation plans Twitter Friends… Chairman Brown on the prospect of a #SAFEBanking vote, “Not next week.”

— Don Murphy (@donmurphy12a) July 20, 2023

…that Senator Sherrod Brown (D-OH), who is the Chairman of the Senate Banking, Housing & Urban Affairs Committee, told him that every hopeful cannabis investor, all of the despondent social equity applicants and especially all of the operators of all-cash businesses who put their life at risk daily should effectively fuck off and die.

OK, he didn’t actually say that as much as he seemingly confirmed suspicions that the Senate will run out of time to make meaningful strides on cannabis banking before we—I mean, they—take an August-long recess, which they most-assuredly deserve after all the hard work they’ve done on behalf of their ~334 million satisfied constituents.

If this is true, we can blame Silicon Valley Bank (pushed everything by a month); or point fingers at the Senate Majority Leader (who just called this a priority); or we can blame ourselves—again—for taking our elected leaders at their word that they would provide this most basic service for something that 91% of Americans fully support.

Of course, this isn’t a referendum on SAFE itself, as much as the timing thereof—the votes are still there, and we wouldn’t be surprised to see a filibuster-proofing ninth GOP senator soon emerge to co-sponsor the bill—but patience trades at a premium 890 days after the top and an already simmering sentiment seems set to boil over.

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[note: I asked an in-the-know pal if it’s possible, after what happened in December, that the Dems are slow-walking this into next week for maximum Hero splash; the response was, “it’s unlikely but possible; mark-up will likely be after recess,” adding that several other potentially positive DC developments were already in motion].

The space, staying true to the path of maximum frustration, swiftly lost 5% as towels were tossed and the NASDAQ got sold, only to reverse late in the session, led by some of the larger players. The MSOS ETF MSOS finished 1.6% lower—.09 as those things go— on ~$41 million plant-touching notional volume. Just another day in the simulation.

In other sector happenings, new reports suggest mental health treatment admissions have fallen in states that legalize marijuana, several studies have indicated cannabis possesses opioid-sparing properties post-surgery, CBD is a safe/ effective therapeutic option for seizures (this we knew) and 2.7 million New Yorkers consumed cannabis last month— just imagine if there was a viable legal framework in place!

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CB1 has positions in / advises some of the companies mentioned and nothing contained herein should be considered advice.

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Photo by Michal Matlon on Unsplash