Bipartisan Bill Would Allow Marijuana Companies to List on Nasdaq, NYSE and Expand Financial Protections
- The CLIMB Act, a bipartisan bill introduced by Representatives Guy Reschenthaler and Troy Carter, aims to allow legally operating marijuana businesses to be listed on major stock exchanges like Nasdaq and the NYSE.
- Currently, most U.S.-based marijuana companies are barred from national stock exchanges due to federal law, limiting their access to financing despite legality in some states.
- The bill would prevent federal agencies from penalizing businesses or individuals that provide services—such as banking, investment, insurance, legal, and technology support—to marijuana companies.
- It would also protect stock exchanges and market participants who choose to list or trade cannabis-related securities, providing legal clarity to encourage their involvement in the cannabis market.
A bipartisan bill introduced in the U.S. House would allow marijuana businesses to access major national stock exchanges while also shielding a wide range of companies that provide services to the legal marijuana industry. Representatives Guy Reschenthaler (R-PA) and Troy Carter (D-LA) have introduced the Capital Lending and Investment for Marijuana Businesses Act, known as the CLIMB Act. The measure, H.R. 7987, would make clear that cannabis businesses operating legally under state law can be listed on exchanges like Nasdaq and the New York Stock Exchange.
Under current federal law, most U.S.-based marijuana companies are effectively shut out of those markets, forcing them to rely on limited financing options despite operating in states where marijuana is legal.
Beyond exchange access, the bill would also block federal agencies from penalizing businesses or individuals solely for providing services to marijuana companies. This includes a wide range of support, such as banking, investment, insurance, accounting, legal work, marketing, technology services, and real estate.
The proposal would also protect stock exchanges and other market participants that choose to list or facilitate the trading of cannabis-related securities, offering clarity to institutions that have largely stayed on the sidelines due to federal restrictions.