Cowen sees uncertainty for cannabis-linked SAFE Act to become a law

High Tide

27/03/2023 15:58

** Cowen sees uncertainty on Congress passing the Secure and
Fair Enforcement (SAFE) Banking Act
    ** SAFE Act is a bill introduced in 2019 to provide legal
protections to financial institutions doing business with
cannabis companies
    ** The brokerage says due to divided Congress there is a
narrow chance that the act could pass by the end of 2024
    ** Notes, in the previous Congress, despite Democrats
controlling both, the House and Senate, the act was not passed 
    ** Most U.S. banks do not service cannabis companies as
marijuana remains federally illegal despite several states
legalizing its medicinal and recreational use 
    ** Some key House Republicans are pushing for the act while
others are opposing; there are signs of Senate Democrats to
devote floor time to the act, Cowen notes 
    ** If the Senate passes it in the next 12 months, there
would be more optimism - brokerage 
    ** Cowen, however, sees the banking crisis dominating
agendas for Senate Banking and House Financial Services, which
puts SAFE Act on the back seat until the crisis is over

 (Reporting by Arshreet Singh in Bengaluru)
 ((Arshreet.Singh@thomsonreuters.com))