(Photo credit: Market Watch).
A bipartisan bill that would allow state-legal marijuana companies to list on major U.S. stock exchanges gained its third sponsor today, with Representative Patrick Ryan (D-NY) signing on to the proposal.
The Capital Lending and Investment for Marijuana Businesses Act, known as the CLIMB Act, was introduced by Representatives Guy Reschenthaler (R-PA) and Troy Carter (D-LA) in March. Filed as H.R. 7987, the measure would give marijuana businesses operating legally under state law access to exchanges such as Nasdaq and the New York Stock Exchange.
The proposal would mark a significant shift for the state-legal marijuana industry, which remains largely shut out of traditional capital markets due to ongoing federal restrictions. Many marijuana operators are forced to rely on limited financing options despite being licensed and regulated under state law.
Ryan’s support comes just days after the U.S. Department of Justice issued an order moving FDA-approved and state-legal medical marijuana to Schedule III under the Controlled Substances Act. A separate federal hearing is scheduled for June 29 to move forward with broader proceedings on rescheduling all marijuana.
In addition to stock exchange access, the CLIMB Act would shield businesses and individuals from federal penalties solely for working with state-legal marijuana companies. The protections would cover services such as banking, investing, insurance, accounting, legal work, marketing, technology and real estate.
The bill would also extend protections to exchanges and market participants that list or facilitate the trading of marijuana-related securities, giving financial institutions clearer legal footing to work with the industry.
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