SAFE Banking Act Turns 10 With Little Fanfare: This Week in Cannabis Investing

The SAFE Banking Act, which aims to improve cannabis companies' access to finance, continues to struggle a decade after being introduced.

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The SAFE Banking Act, a bill designed to allow cannabis businesses to operate legally without fear of punishment by federal regulators, was introduced in 2013.

Not a single state had legalized adult-use cannabis 10 years ago. However, a few intelligent members of Congress were able to see the writing on the wall. Those with foresight understood that legalization efforts would soon result in individual states running their own recreational cannabis markets and federal oversight would be needed in some form or fashion. Unfortunately, politicians do not always act in a unified or timely manner. 

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Morgan Paxhia
Contributing Writer

Morgan Paxhia is Managing Director and Co-Founder of Poseidon Investment Management. With over 10 years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. This content is not intended to provide any investment, financial, legal, regulatory, accounting, tax or similar advice, and nothing should be construed as a recommendation by Poseidon Investment Management, LLC, its affiliates, or any third party, to acquire or dispose of any investment or security, or to engage in any investment strategy or transaction. An investment in any strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. This content should not be considered as an offer or solicitation to purchase or sell securities or other services. Any of the securities identified and described herein are for illustrative purposes only.  Their selection was based upon nonperformance-based objective criteria. The content presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Past performance is not indicative of future results.