Stock prices for Tilray, Canopy Growth, and Aurora Cannabis surged today
In a significant development for the cannabis industry, a recent poll shows that a majority of Americans support the legalization of recreational marijuana possession. The support, which stands at 76% among Democrats and 52% among Republicans, indicates that the movement towards marijuana legalization in some form in the U.S. is gaining momentum.
During a debate with Joe Pinion on Sunday, Senate Majority Leader Chuck Schumer discussed the issue of marijuana legalization, hinting that the bill would allow legal pot businesses access to banking services. Schumer has reportedly made progress on the topic with Republican senators, and the SAFE Banking Act of 2025 is currently awaiting a vote on the Senate floor.
The SAFE Banking Act aims to provide legal clarity and a safe harbor for financial institutions to serve cannabis businesses in states where cannabis is legal, without risking federal penalties. This Act, if passed, would reduce public safety risks caused by cash-heavy cannabis operations, enhance regulatory oversight, improve tax collection, and facilitate compliance with tax laws.
For U.S. marijuana businesses, the SAFER Banking Act could be transformative by enabling access to banking services, reducing their reliance on cash, and thus lowering risks of theft and crime. It would also support better regulatory tracking and foster a safer and more transparent industry environment.
The jump in cannabis stocks is due to the possibility of the United States easing banking rules for legalized marijuana. Today, stocks of cannabis companies like Tilray and Canopy Growth have increased, with Tilray's return exceeding 40% in the last month, and Canopy Growth's shares up by 18.3%. Aurora Cannabis (ACB) stock has also popped 11.7%.
The passage of the SAFE Banking Act is broadly viewed as a positive signal for the cannabis industry’s financial normalization, which could boost investor confidence in cannabis-related stocks globally, including Canadian companies. Canadian companies like Tilray and Canopy Growth could potentially participate more in the U.S. market if the Act is passed.
In another significant development, President Joe Biden announced earlier this month that he would pardon thousands convicted of federal simple marijuana possession. Schumer agreed with Biden's move and urged the federal government to take a stance on marijuana legalization. Senate Majority Leader Chuck Schumer stated that Congress is getting "very close" to agreement on a marijuana bill.
As the SAFER Banking Act moves closer to potential enactment, it could markedly improve the operational environment and regulatory oversight for U.S. marijuana firms. This development is likely to have a positive ripple effect on Canadian cannabis stock valuations through increased investor confidence and industry legitimacy.
- The recent development in the cannabis industry, the SAFE Banking Act of 2025, aims to provide legal clarity for financial institutions to serve cannabis businesses, potentially attracting more investment in the sector.
- The passage of the SAFE Banking Act could inspire a shift in the lifestyle and technology sectors as well, given the increasing public support for marijuana legalization and the potential growth opportunities it presents.
- With both financial normalization and a possible decrease in legal penalties for marijuana possession, the sports world might witness an increased number of professional athletes investing in, or even partnering with, cannabis businesses in the future.
