The SAFE Banking Act passed the House, but that’s not the only good news…

While cannabis stocks have had a turbulent week, the U.S. cannabis industry may have had its best week ever.

There were several momentous announcements from both federal and state governments that will help the cannabis industry as it grows to an estimated $30 billion by 2025.

Let’s start with the big one…

The House of Representatives has passed the SAFE Banking Act!

This bill would normalize cannabis banking, offering lower costs and increased opportunities to every cannabis company in the country.

The bill now goes to the Senate. I’ve written a lot about the SAFE Banking Act and about how the Senate is the real key.

I’ll have more on that soon.

But there was more good news, and I’ll be sending you detailed reports about that down the road.

  • The governor of Pennsylvania and lieutenant governor both came out in favor of legal recreational cannabis in that state.
  • Governor Andrew Cuomo (NY-D) announced that he’ll be coordinating with other governors to set policies for legal recreational cannabis. He’ll be working with the governors of neighboring states to take a regional approach to cannabis. A regional approach increases the chance of adult-use legislation in each state, and it will save companies in the region a lot of hassle when they design and package products. Perhaps, most importantly, they can stop Cuomo’s nightmares.
  • One of those regional partners, New Jersey, now hopes to pass its adult-use legislation this year, after local elections in the state. This is a faster timeline than many had expected, and it makes recreational cannabis an election issue. With over 60% of New Jersey residents favoring cannabis legalization, the voters will have a chance to enact their will.
  • Massachusetts made news because of its ill-considered ban on legal vape pens. But the very next day, the state’s Cannabis Control Commission announced that it will start to allow home delivery of cannabis. The first deliveries should start in a couple of months, but there are some details that still have to be ironed out. It could be that delivery will not only be a benefit for those making the deliveries, but it could speed the application process for new dispensaries – if customers in an area can have cannabis delivered right to their doors, opposition to a local store to collect profits and pay taxes will go down.
  • Massachusetts is also setting the stage for cannabis lounges. That would put normally-conservative Massachusetts ahead of cannabis trendsetters like Colorado and Washington.

The U.S. is moving toward widespread adult-use legalization of cannabis, but I’ve never seen so much good news on the regulatory front crammed into just one week.

During a week in which the stocks were down, I thought you’d want to know that the news is positive.

Greg Miller

Executive Director, National Institute for Cannabis Investors


Comments

9 responses to “This Was a Huge Week for Cannabis”

  1. Need to see better comments when there is major movement of stocks recommend. Kushco Holding is down today significantly with no word of its offering

  2. So I guess that it is pretty scary that stocks have been down even more during a week where all of this FANTASTIC regulatory news has come out. NICI has made such a big deal in the past about how much regulatory news is going to affect the sector so if this is any indication then what is it going to take to actually have a positive effect on share prices?

  3. As above, I too am wondering how the eventual passing of the Safe Bank Act is going to affect IIPR. In the past you have stated that banks are not in the leasing business but after seeing how well IIPR has done I’m sure it would take very little for banks to come out with their own REIT’s and undercut IIPR.

  4. This is a question for Greg. Please make sure he gets this.

    Over the past month or more, the investors report has shown almost all stocks are going down. My stocks have gone down everyday this week. Im losing money everyday. My question is why is this happening? I would like to know more about this. I read the investors report everyday. Most of it is positive. Which makes no sense as to why stocks keep going down. Greg please provide your thoughts about this.

    • I can answer Robin although I don’t work here. Tariff talks started the whole thing. Then Canopy CEO and founder gets walking papers. Then Illegal growing by Canntrust. Then FDA warning letters to Curaleaf. Now this unforgiving vape crisis where cannabis companies are getting lumped in with the others by the media. Not to mention the fact that the analysts take every opportunity they can to bash cannabis and the problem is that too many people listen to these analysts. It’s a perfect storm. We’re still in the expansion phase yet investors are thinking more and more that they want to see profits, not just revenue growth. The problem is that it takes money to expand so most companies are not going to be consistently profitable yet. There have been so many issues that people are starting to think the whole sector is a joke. Investors are losing confidence in these companies plain and simple. Personally I think it is wrong to hold an entire sector accountable for a few companies. I mean, some of the other companies are still the great companies they were before all of this stuff began happening. The biggest problem is that the vaping issue kind of was the last straw. This is just my opinion.

  5. It has been a rough ride! I hold many cannabis positions, as recommended by Cannabis Investors, Cannabis IPO, and Nova-X Marijuana Millions even earlier. It is discouraging to see cannabis stock prices tumble week after week despite regulatory and social news seeming to be so positive. I suppose the predicted shake-out of cannabis companies is taking place, the weaker ones failing for various market realities, while even the stronger ones are frustrated by the prevailing uncertain financial and regulatory climate. The social hype led investors to take on more optimism than reality justified. I hope holding on to the seemingly strongest positions will be justified when projections and expectations settle more realistically with market realities and demand.

  6. This was a huge week for cannabis stocks. With banking coming in, maybe we can enjoy a nice rally and try to recoup some of our losses. We are all earnestly realizing what has unfolded. Wow, what a year this has been; very painful and disappointing to have lost this much $$$$.

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