Cannabis stocks soared on Monday on the news that the US Congress is “very close” to passing banking legislation set to revolutionize the cannabis industry.
The Secure and Fair Enforcement (SAFE) Banking Act will protect banks and other financial institutions from penalties for providing services to legitimate cannabis-related businesses.
During a debate hosted by Spectrum News on Sunday, Senate Majority Leader Chuck Schumer said Congress was “very close” to passing the bill.
READ: US cannabis-friendly SAFE banking legislation 'will be passed before midterms'
“I am working in a bipartisan way with Democrats and Republicans to take the SAFE Banking Act, which allows financial institutions to involve themselves in cannabis companies and lend money to them — but it also does some things for justice, such as expunging a record,” Schumer said during the debate.
Weed stocks jumped following Schumer’s comments, with the AdvisorShares Pure Cannabis ETF up 6% and the AdvisorShares Pure US Cannabis ETF up 6.3% shortly after noon on Monday.
Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) had soared about 15%, Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF) was up 8.5%, Trulieve Cannabis Corp. (CSE:TRUL) had gained 6.5%, Canopy Growth Corporation (TSX:WEED, NYSE:CGC) was up about 12.7%, and Green Thumb Industries Inc. (CSE:GTII, OTCQX:GTBIF) had added about 7.1%.
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