Cannabis Stocks Move As Schumer Pledges To Bring Bill To Senate Floor: Expect GOP Pushback

The passage of the bipartisan banking bill has sent some Senate members opposed to the legislation into their corners as Senate Majority Leader Chuck Schumer (D-NY) pledges to bring the bill to the floor “very soon.” It also sent cannabis stocks surging, but they’ve since pulled back. 
The legislative development is occurring as cannabis sector leaders gather at the Benzinga Cannabis Capital Conference in Chicago. 

What’s Happening? Several GOP senators are already vowing to kill the legislation.

“The SAFER Banking Act is sold as an easy banking fix. In reality, the legislation is fatally flawed and its consequences are complex and sweeping. We will remain opposed to liberalizing drug laws and will fight the SAFER Banking Act to protect our youth from dangerous policies that would result in increased promotion of marijuana use,” Senators John Cornyn (R-TX), Ted Budd (R-NC), James Lankford (R-OK) and Pete Ricketts (R-NE) wrote to Schumer and Senate Minority Leader Mitch McConnell.

“This legislation also compromises the integrity of the United States banking system by giving banks government approval to participate in illegal activity, setting a dangerous new precedent,” the senators continued. “Allowing banking access to a Schedule I drug sets a dangerous legal precedent and will help facilitate money laundering for drug cartels.”

Schumer is pledging to bring the bill to the floor “very soon.” 

“Our SAFER Banking Act will connect cannabis businesses, especially ones in minority and underserved communities, to find to traditional financial resources like bank accounts and small business loans, creating a safer and more transparent environment for the industry to grow,” Schumer said. “Now is the time to get it done.”

Cannabis stocks, which rose on the news, have leveled off, perhaps as the reality of how divided the U.S. Senate and other legislative bodies are sinks in. 

The AdvisorShares Pure US Cannabis ETF MSOS is down 0.99% at $8.01 at the time of publication Wednesday. 

Want to watch more about the cannabis bill and what it means for the industry? Tune in to the Cannabis Capital Conference in Chicago live. For existing subscribers, you can get direct access through our research platform. For new users, you can get instant access here!