CURLF - Why Cannabis Investors Shouldn't Get Too Excited About the Latest Stimulus Bill
There's a lot of optimism in the cannabis industry surrounding the Health and Economy Recovery Omnibus Emergency Solutions (HEROES) Act. The key reason: It includes the Secure and Fair Enforcement (SAFE) Banking Act. If the HEROES Act passes the Senate, it will send pot stocks rallying, because it will make it easier for U.S. cannabis companies to access banking services, reducing their need to hold cash. It would also signify an important step forward toward the legalization of marijuana at the federal level. But as exciting as it sounds, investors shouldn't get ahead of themselves, and here's why:
The HEROES Act will help provide relief to many Americans, but it's a loaded, complicated document that's more than 1,800 pages long. It includes areas relating to student loan forgiveness, rent and mortgage assistance, stimulus payments, unemployment benefits, and of course, cannabis. One area that's particularly controversial is the bill's offer of assistance to undocumented immigrants.
Although the bill passed the House, more than a dozen Democrats still opposed it. There's even less hope that it will pass a Republican-controlled Senate.