Cowen analyst says cannabis banking legislation is unlikely to get through the Senate

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A Cowen analyst says the SAFE Banking Act, which is linked to another piece of legislation, is highly unlikely in Parliament, will make it through the Senate.

SAFE would allow US financial institutions to do business with legal cannabis companies. The legislation is seen as a potentially crucial element in the growth of multi-state operators (“MSOs”) and supporting federal marijuana legalization.

At the end of last week, the rep. Ed Perlmutter (D-Colo.) Banking law as an amendment to the America Competes Act.

But Cowen’s Jaret Sieberg wrote that Perlmutter’s amendment is likely dead in the Senate, as even Senate Majority Leader Chuck Schumer (DN.Y.) is likely to oppose SAFE amid his desire for more comprehensive marijuana legislation.

But Perlmutter’s “push still matters,” Sieberg said. “It adds pressure to trade on SAFE. That’s why we are still looking for a way forward for a broader SAFE ACT in the second half of 2022.”

MSOs: Trulieve (OTCQX: TCNNF), Cresco Labs (OTCQX: CRLBF), Green Thumb Industries (OTCQX: GTBIF), Curaleaf (OTCPK: CURLF), Verano Holdings (OTCQX: VRNOF), Land holdings (OTCQX: ACRHF), MedMen Enterprises (OTCQB: MMNFF), and Jushi Holdings (OTCQX: JUSHF).

Read why Seeking Alpha contributor BeanKounter Capital sees Trulieve as a strong buy.

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