Lawmakers Delay SAFE Banking Act: This Week in Cannabis Investing

The SAFE Banking Act is at risk of not passing during the lame-duck session in Congress, sparking volatility in marijuana stocks.

US Capital building
(Image credit: Getty Images)

This week, cannabis industry advocates were closely watching to see if the National Defense Authorization Act (NDAA) would be used as a vehicle to advance legislation on cannabis banking reforms such as the Safe Banking Act or Safe Plus. 

This pathway seems all but closed after legacy remarks from Republican Senator Mitch McConnellof Kentucky came back to the surface. Committee consideration of the large-scale defense bill was delayed amid disagreements among House lawmakers over several key issues. At the same time, several senior GOP senators filed concerns with the Department of Justice about the possibility of cannabis banking reforms. 

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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.