jib, SafeThere’s a new bill for the cannabis bank in town.
On June 23, United States Representatives introduced Troy A. Carter Sr. (D-LA) and Guy Reschenthaler (R-PA) Capital Lending and Investment to Marijuana Companies Act (CLIMB).
If signed into law, the bill would enable cannabis companies to access a wide range of banking services, from lending to credit card services and money transfers. It will also allow the New York Stock Exchange, Nasdaq and other national stock exchanges to list the cannabis businesses, providing them with a new avenue for generating capital and growth.
The bill’s sponsors intend to provide targeted financial relief to small businesses and businesses run by veterans and members of disadvantaged communities.
“The more sources of financing available for the cannabis business the better, particularly for entrepreneurs, small businesses, and minorities who may have had challenges in obtaining capital,” Gallup added.
The murder changed my mind: Pass the SAFE Banking Act now
What is in the CLIMB Code?
Primarily, CLIMB would allow the cannabis industry to access many “business assistance” opportunities from banking institutions. The term includes a wide range of activities: not just credit card services, but money transfers, accounting services, and lending, to name a few.
“US cannabis companies are currently barred from receiving conventional lending and financing, which makes it difficult to compete with larger global competitors,” Representative Reichenthaler said via the same press release.
“The CLIMB Act will remove these barriers to entry, and provide state legal US cannabis companies, including small, minority and veteran-owned businesses, access to the financial tools needed to succeed. This bipartisan legislation will boost the economy, create jobs, and level the playing field for businesses. American”.
As of press time, none of the representatives have been reached for comment.
The bill would additionally allow government agencies to provide grants and other sources of government funding for cannabis companies, focusing on those in areas most affected by the war on drugs.
Finally, CLIMB would amend the Securities Act of 1934 to create a “safe haven” for national stock exchanges such as the NYSE and Nasdaq to list cannabis businesses and allow shares of these companies to trade in the market.
Currently, the cannabis business can only be found on the Canadian Stock Exchange and is traded via over-the-counter (OTC) markets, which do not provide the security of a third-party intermediary, like a traditional exchange. Since a third party does not assign a value to a particular stock in the OTC market, OTC stock prices are determined by the buyer and seller only.
interested in trade Reports that OTC markets Vulnerable to fraud and criminal activity.
Right now, the future of CLIMB looks as clear as a month-old bong waters. What passing the bill would mean for businesses large and small, how it would work in line with the SAFE Banking Act, and whether it could muster enough support to pass Congress in the first place, all of that has yet to be seen.
Stay tuned for more updates on CLIMB, SAFE, and other federal cannabis reform legislation on Leafly.