Buzz Kill: Mike Johnson's Election As New House Speaker Does Not Bode Well For Cannabis Legalization Nor Banking Reform

U.S. Rep. Mike Johnson (R-LA) was confirmed as the speaker of the House of Representatives Wednesday in a 220-209 vote over Minority Leader Hakeem Jeffries (D-N.Y.) following weeks of deliberation after Kevin McCarthy became the first person in U.S. history to be removed from the position.

The election of the conservative congressman from Louisiana to the leadership role does not bode well for the various cannabis reform bills that have fought their way into the halls of Congress, especially the SAFER Banking Act, which passed in the Senate Finance Committee in September.

Johnson, vice chair of the Republican conference, has consistently voted against most all cannabis-related legislation, including the cannabis banking reform and research bills that made their way onto the House floor on numerous occasions.

Banking Reform On The Back Burner?

Cannabis companies had more than a glimmer of optimism that the SAFER Banking Act would provide eventual access to financial services for state-legal companies that have been shut out all these years due to marijuana’s classification as a federally illegal substance.

Weed stocks tended to jump each time legislation moved closer to acceptance. Stocks got an initial push upward after a difficult 2022 with President Joe Biden's pardon in October of last year of all federal weed possession convictions and his suggestion to ease cannabis’ draconian classification.

As a measure of the sector’s volatility, the AdvisorShares Trust AdvisorShares Pure US Cannabis ETF MSOS is down some 13% on a year-to-date basis.

Johnson’s Consistent Anti-Weed Stance

Going back to 2019, Johnson also voted against a spending bill amendment to protect all state cannabis programs from federal intervention, but did not vote on the measure in 2020. He also did not vote on legislation to federally legalize marijuana in 2020 and 2022.

In September of this year, House-approved legislation that would prevent prior marijuana use from becoming grounds for being found unsuitable for federal employment also got the thumbs down from Johnson, as did a June 2023 House bill that would provide $150 million for cannabis research.

When he was initially elected to the House of Representatives in 2016, Johnson received an infamous F rating from the cannabis legalization advocacy group NORML.

Photo: Benzinga edit of Shutterstock photo.