Glass House Brands CEO Thinks U.S. Cannabis Is in Good Shape Despite Possible Midterm ‘Red Wave’
In this weekend’s Trade To Black Podcast, Shadd Dales and Benjamin A. Smith sat down with our special guest, Glass house brands (OTCMKTS: GLASF) Co-Founder, President and CEO Kyle Kazan. A range of issues are addressed, with a focus on the midterm elections in the United States and their impact on the cannabis industry nationwide.
Although incumbent Democrats have been favored to retain control of the Senate most of the time during the build-up to Nov. 8, the momentum has quickly turned against them lately.
According to the most recent projections of A real clear policy, Republicans are now favorites to win 53 Senate seats, with pickups in Arizona, Georgia and Nevada. A few weeks ago, it was the Democrats who were expected to win 3 or 4 seats, although the House still planned to move to GOP control.
The potential ramifications of Republican control in the US Senate over the cannabis industry are many.
Specifically, Mitch McConnell would return to a job as Senate Majority Leader, the same position he held during the Trump administration. Once there, McConnell consistently refused to support any cannabis reform coming out of the House, leaving potential bills to wither on the vine.
More recently, as Senate Minority Leader, McConnell did not name any of the nine Senate Republican cosponsors to the US Innovation and Competition Act conference committee this spring, where SAFE was attached to the House version of the bill. McConnell further attacked House Democrats’ efforts to include “marijuana banks” in the package.
While there’s little evidence McConnell would move on to broader legalization initiatives, some analysts believe a red Senate could spur current Senate Majority Leader Chuck Schumer into action. investment bank cowen projects that in a congressional red script: “With reduced pressure on progressives to push for social justice provisions due to Biden’s actions, a narrow version of SAFE should pass.”
If the SAFE Banking Act is passed, it should have beneficial effects on the US cannabis industry. The bill generally prohibits a federal banking regulator from penalizing a deposit-taking institution for providing banking services to a legitimate cannabis-related business. The language restricts the termination or limitation of deposit insurance or stock insurance of a deposit-taking institution only because the institution provides financial services to a legitimate cannabis-related business, among others.
We discuss this and other impacts of the midterm election outcome on cannabis in the United States.
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