The SAFE Banking Act, legislation that would allow legal cannabis businesses to work with the US financial system, will be left out of the National Defense Authorization Act, Politico reported.
Inclusion in the bill was seen as a promising vehicle to get the banking legislation passed.
Senate Minority Leader Mitch McConnell (R-Ky.) criticized Democrats’ attempts to include any marijuana-related language in the defense bill, according to The Hill.
“We’re talking about a grab bag of miscellaneous pet priorities, like making our financial system more sympathetic to illegal drugs or permitting reform in name only that’s already failed to pass the Senate earlier this year,” he said on the Senate floor.
Most cannabis multi-state operators are down Wednesday following the news.
MSOs: Cresco Labs (OTCQX:CRLBF); Columbia Care (OTCQX:CCHWF); Trulieve Cannabis (OTCQX:TCNNF); Green Thumb Industries (OTCQX:GTBIF); Curaleaf Holdings (OTCPK:CURLF); MedMen Enterprises (OTCQB:MMNFF); Acreage Holdings (OTCQX:ACRHF); Ayr Wellness (OTCQX:AYRWF); Verano Holdings (OTCQX:VRNOF); and Jushi Holdings (OTCQX:JUSHF).
Cannabis ETFs: AdvisorShares Pure Cannabis ETF (YOLO), Amplify Seymour Cannabis ETF (CNBS), ETFMG Alternative Harvest ETF (NYSEARCA:MJ), AdvisorShares Pure US Cannabis ETF (MSOS), and Global X Cannabis ETF (POTX).
The setback comes a matter of days after the Department of Justice issued a memo saying that the SAFE Banking Act could hinder law enforcement activities.
However, in an email obtained by Punchbowl News, a DOJ official said that the agency believes the legislation can be implemented with some minor changes.
H/T: seekingalpha.com
