Research firm Veda Partners predicted a 70% chance that the Secure and Fair Enforcement (SAFE) Banking measure to open up the U.S. financial system to cannabis companies will pass Congress this year during its lame duck session after the November election, according to a note published Thursday. If Republicans re-take the House of Representatives and/or the Senate in the midterm elections, the urgency for passing SAFE before Republicans officially take control will increase exponentially, said Spencer Perlman of Veda Partners. “Since several lawmakers are retiring or will be defeated and therefore become ‘lame ducks’ who never again have to justify their votes to the electorate, there will be many more lawmakers than normal who can vote their consciences without political consequences that would open up the U.S. financial system to domestic cannabis companies to win approval in Congress.” The SAFE Banking measure has passed the U.S. House six times including as an amendment to the America Competes Act earlier this year, but it has not passed the Senate. Shares of the AdvisorShares Pure US Cannabis ETF are down 32.5% this year, including a drop of 0.9% on Friday. The Nasdaq has moved lower by 15.9% this year.
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