California is getting closer to sidestepping one of the biggest barriers for the marijuana industry.

On Tuesday (May 21), the California Senate voted in favor of legislation designed to designate special banks as being capable of participating in the marijuana industry.


During its third reading, the bill was approved by a vote of 36 to one. It will now move on to await approval from the State Assembly and California Governor Gavin Newsom before it can become law.

“The bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing banking services, as defined, to cannabis businesses,” the legislation indicates.

If approved, the legislation would create new state agencies: the Cannabis Limited Charter Banking and Credit Union Law and the Cannabis Limited Charter Bank and Credit Union Advisory Board. These would aid in the regulation of the bill itself.

This state regulation would offer a pressure release to legal marijuana companies in need of banking operations. However, under federal law, marijuana and its business remain illegal.

Attorney Robert Selna with California-based Wendel, Rosen, Black & Dean, told CNBC that the bill will help business “incrementally.” Companies won’t be able to get loans from the banking firms that apply to become state-chartered cannabis banks.

“It will help cannabis companies pay the rent, but how it corresponds with federal law is still a question,” Selna said.

Momentum for marijuana policy support increases

In March, the US House Financial Services Committee approved the Secure and Fair Enforcement Banking Act of 2019, otherwise known as the SAFE Banking Act.

This bill is designed to offer protections on banking activities with marijuana companies and could grant these firms options such as credit lines.

Pressure has been building on Congress to pass the bill since its positive vote by the committee. The bill was introduced in the House on May 7.

On Thursday (May 23), Marijuana Moment reported that the bill has gained two new co-sponsors, Representatives Hakeem Jeffries (D-NY) and Lauren Underwood (D-IL). In May alone, the bill has seen the addition of 15 new cosponsors.

“I think that the passing of the SAFE Banking Act could help to signal a larger shift in public opinion that may ultimately help legislation like the STATES Act to gain traction,” Marc Adesso, veteran cannabis attorney with law firm Waller Lansden Dortch & Davis, previously told the Investing News Network.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.

Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.

Keep reading... Show less

As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.

A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.

Keep reading... Show less

The product will include polyphenols known to have significant health benefits.

BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.

The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).

Keep reading... Show less