Canna Gets Whipped

Banking has bipartisan support.

Daily Recap

As Congress prepares to pass a final package of spending bills for the 2024 Fiscal Year ahead of Friday’s deadline, renewed attention has shifted to other legislative priorities, including the Secure and Fair Enforcement Regulation (SAFER) Banking Act.

The chairman of the Senate Banking Committee said that passing marijuana banking legislation remains a priority for the chamber and a top Republican congressman has reaffirmed his support, despite not being “a marijuana guy.”

"Like it or not, if your state has enacted laws creating cannabis as a legal entity that is legitimate, our bankers should be allowed to bank. -House Maj. Whip Tom Emmers

Swing State Cometh

Pennsylvania lawmakers held another hearing on marijuana legalization, this time focusing on the criminal justice implications and potential benefits of reform.

As the governor steps up his push for legalization, including the policy change in his budget request last month, members of the Health Subcommittee met today.

“I think we are really well-positioned to move forward with legislation.”

Red State Weed

A bipartisan group of 20 state attorneys general are imploring Congress to take action to address a looming public health “crisis” due to the burgeoning multibillion-dollar market for intoxicating hemp products.

Congress legalized hemp under the 2018 farm bill, touting it as a boon for struggling farmers, but the market has become increasingly dominated by intoxicating products that are largely unregulated and often sold at gas stations and convenience stores.

The River 🎶

While New York and New Jersey share a border along the Hudson River, they've been far apart in their rollouts of licensed recreational-pot sales over the past three years.

The neighboring states both approved adult-use cannabis in 2021, but New Jersey's rollout has been money as it’s on track for $1 billion in cannabis sales, while New York is launching an overhaul of its licensing program as illegal shops flourish in the state.

Stocks & Stuff

Cannabis stocks were a mixed bag with most of the price action north of the border. Canopy Growth paced the Canucks, rising as high as +20% on the session, as Village Farms and Organigram tagged along with double-digit gains of their own.

On the U.S. side, U.S. cannabis ETF spent most of the day continuing it’s digestion of the Friday-Monday 22% lift. It was trading 2% lower late this afternoon before the power hour giggled it green and a late fade brought us home.

Below, we’ll talk through today’s price action, finger a potential catalyst for the recent Canadian outperformance, measure U.S. multiples, touch on U.S. taxes, and spy robust job growth across this emerging industry.

All that and more, just scroll down.

Top Stories

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $97M ($62M)