Tilray Brands and Curaleaf Holdings shares both climbed nearly 10% on Thursday after a group of bipartisan US Congress members reintroduced the Secure and Fair Enforcement (SAFE) Banking Act in the House and Senate.
The proposal would ensure that legal cannabis businesses have access to critical banking and financial services.
While an earlier version of SAFE has passed the House seven times previously, it’s now gaining support in the Senate and may be nearing the 60 votes needed to pass, Bloomberg reported.
“For the first time, we have a path for SAFE Banking to move through the Senate Banking Committee and get a vote on the floor of the Senate,” US Senator Jeff Merkley said in a statement.
Under current US federal law, banks and credit unions face federal prosecution and penalties if they provide services to legal cannabis businesses because cannabis is still a Schedule I substance, the same classification as heroin and LSD.
Other notable cannabis-related movers on Thursday included The Roundhill Cannabis ETF (WEED), which surged as much as 14%, its largest intraday jump in six months.
Meanwhile, 1606 Corp was up 10.1% and Jushi Holdings had added 9%.
Contact Sean at sean@proactiveinvestors.com