Will the SAFE Banking Act Get Passed in 2022? This Week in Cannabis Investing

Marijuana advocates are hoping the outgoing Congress will take action on the Safe Banking Act by year's end, but it doesn't look likely.

american flag with shadow of marijuana leaf
(Image credit: Getty Images)

At Poseidon, we've long been proponents of the SAFE Banking Act, legislation that will improve cannabis companies' access to finance. The importance of SAFE lies more in what it represents for small businesses and possible changes at the federal level. 

The SAFE Banking Act is an unsophisticated bill that should have passed a long time ago. Somehow even with bipartisan support, Congress is struggling to get it done. After missing out on getting attached to last week's defense budget during the lame-duck session, SAFE's remaining opportunity to pass will be with the omnibus funding package before the year's end. 

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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.