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.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

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.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading U.S. provider of consumer products in cannabis, today announced the Company will have senior management participating in the following virtual financial community conferences and events during December 2020 .

  • Roth Deer Valley Consumer Conference – December 9 th to 11 th , 2020
  • Cantor Fitzgerald 2020 Virtual Cannabis MSO Summit – December 15 th to 16 th , 2020
  • MKM Partners – The Road Ahead, Preparation for 2021 Conference – December 15 th to 16 th , 2020

For more information regarding upcoming Curaleaf financial community conference and event participation please visit the investor relations section of the company website, under the events tab, at https://ir.curaleaf.com/events .

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce the appointment of Dr. Joel Moody, MD, MPH, DTM&H, as a medical and clinical advisor to the Company to assist in the expansion of clinical studies in Canada and the clinical data analysis on the ongoing U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (the “Study”) to evaluate the safety and efficacy of Bucillamine in patients with mild-moderate COVID-19.

“We would like to welcome Dr. Moody as a medical and clinical advisor to our team and we look forward to his contributions in our ongoing FDA Phase 3 clinical study as well as expanding our COVID-19 studies in Canada,” said Michael Frank, CEO of Revive. “Dr. Moody’s experience in clinical epidemiology, data analysis and research are key to our FDA Phase 3 study as we gather clinical data from patients enrolled.”

Keep reading... Show less

– FinCanna Capital Corp. (CSE:CALI) (OTCQB:FNNZF), based in Vancouver, BC today announced that Andriyko Herchak, CEO, will present live at VirtualInvestorConferences.com on December 3 rd .

Keep reading... Show less

First-of-its-kind trial in Canada will pave the way for expanded MDMA-assisted treatment to support patients with posttraumatic stress disorder

Keep reading... Show less

Multi-year partnership designates BioSteel as new official sports drink of Philadelphia 76ers team, Training Complex, and the presenting partner of 76ers Training Camp

BioSteel today announced a multi-year deal with the Philadelphia 76ers, making the sports hydration company the official sports drink of the team. BioSteel will also serve as a partner of the Philadelphia 76ers Training Complex, and the presenting partner for 76ers Training Camp, which begins next week.

Keep reading... Show less