Written by Moneypig Trading Team
Update on Dec 19, 2022
Moneypig Trading is a group of data-driven investors and traders with excellent and consistent investing and trading records, as shown here.
What is the marijuana SAFE Banking Act (SAFE)?
The marijuana SAFE Banking Act could be a significant catalyst for the marijuana industry because the following reasons.
It can bring institute money into the marijuana industry
The marijuana industry can finally get mortgages from the banking system to grow in scale
US marijuana companies listed in the OTC market can be uplisted into NASDAQ.
There is much more to cover about the history of marijuana legalization and the SAFE Banking Act. Please watch our 10 minutes youtube videos for a quick summary:
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SAFE Not Included in Omnibus and NDAA. No Chance of Passing Before Jan 3rd, 2023
The omnibus text is finally out, and it is 4155 pages long. The seven pages summary of the omnibus bill is here. There is not a single word for SAFE. Unfortunately, SAFE was not included in the final NDAA bill passed last week either. There is also no time for a SAFE stand-alone vote before Jan 3rd, 2023, as the Congress' focus would be passing the omnibus budgeting bill before the no-meeting period, which is between Dec 22th, 2022, and Dec 31th, 2022. In a nutshell, there is no chance to pass SAFE in the current congress term.
A Stand-Alone Vote for SAFE Can Still Happen in the Next Congress
GOP will control the House in the next Congress. The following House majority leader is still in the making, but Representative Kevin McCarthy is likely to be the next House majority leader. McCarthy is not against SAFE, but SAFE won't be his priority either.
There is a process in the House called “discharge petition”. In the next congress, Democrats, as the minority, can use a discharge petition to force a vote on a bill with 218 votes. Dems will have 213 votes from their party, and they will only need 5 out of the 222 Republicans to vote "Yes". Once a “discharge petition” has 218 votes, it will force a vote on a bill, such as SAFE. If SAFE is passed in House under this circumstance, which has been passed by the House six times, then SAFE will be sent to the Senate for a stand-alone vote. If SAFE does have bi-partisan support in the Senate, SAFE should have a chance of passing. However, marijuana legalization advocates have been disappointed at the Senate level in the past two years.
Financial Giant Euroclear Announces Plans To Stop Supporting ‘Cannabis-Related Stocks’
Since SAFE is unlikely to be passed anytime soon, trouble is rising. Euroclear doesn't allow customers to hold marijuana stocks and will gradually sell marijuana stock holding into Jan 27, 2023. Therefore, we expect this sector to be heavily sold off into Jan 27, 2023. The year-end tax loss harvesting will add downside pressure to the marijuana sector as well.
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About us:
Moneypig Trading is a group of data-driven investors and traders with excellent and consistent investing and trading records, as shown here.
Disclaimer:
Not financial advisors. Please invest at your own risk.
If marijuana is not legal where you are located, we do not encourage any use, growth, or sale of marijuana. Please consult your local attorneys for any related questions