The SAFER Banking Act, a bill that is designed to allow cannabis businesses to engage with U.S. banks, has a better shot at passing if it’s attached to crucial legislation that must be approved by year’s end, suggests Pablo Zuanic of Zuanic & Associates. This strategy could expedite the bill’s progress, especially after it clears the Democratic-controlled Senate. As a result of this optimism, some cannabis stocks saw their prices surge in today’s trading. Zuanic estimates that the odds of the SAFER Act passing the Senate are 50%-60%.
However, he thinks the odds of passing in the House are slimmer. This is due to current disagreements between House Speaker Mike Johnson (R-La.) and GOP opposition to cannabis banking.
In a separate development during a Senate Appropriations Subcommittee meeting, Senator Jack Reed (D-R.I.) questioned Attorney General Merrick Garland about a controversial provision in the SAFER Act—Section 10. This provision initially required banks to alert customers about government inquiries into their accounts. This provision was feared to potentially tip off criminals under investigation but has since been modified to reduce such risks.
Which Cannabis Stock Is Best to Invest In?
Among the popular weed stocks, analysts expect Trulieve stock to deliver the most gains from current levels. Indeed, it has a Strong Buy rating with almost 45% upside potential based on a $16.46 per share price target.
