U.S. House of Representatives sends SAFE Banking measure to Senate for sixth time

The U.S. House of Representatives on Friday approved the SAFE Banking bill for the sixth time, but the Senate is not expected to move on the measure to open up banking services for cannabis companies. Congressman Ed Perlmutter successfully attached the measure to the America Competes Act, which passed the House by a vote of 222 to 210. Viridian Capital Advisors analyst Jonathan DeCourcey said cannabis stocks may rise in coming days on the heels of the development. “We expect further positive momentum for cannabis stocks to come this week as retail investors again flock to the space before the gains are ultimately reverted as the reality of progress comes to light,” he said in a note on Sunday. “Even without legislation, cannabis stocks are too cheap when considering the growth opportunity and the scale of operations (including profits) that companies have developed.” The Cannabis ETF

is down 14.6% so far in 2022, while the AdvisorShares Pure U.S. Cannabis ETF

is down by 13.6% and the AdvisorShares Pure Cannabis ETF

has lost 18.2%. By comparison the Nasdaq is down 9.9% year-to-date.

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