Federal Bill to Allow Marijuana Companies on Major Stock Exchanges Gains New Sponsor
- The Capital Lending and Investment for Marijuana Businesses Act (CLIMB Act) has gained a new bipartisan sponsor, increasing its total supporters to four members of Congress.
- Introduced as H.R. 7987, the bill aims to allow state-legal marijuana businesses to list on major U.S. stock exchanges like Nasdaq and NYSE, which are currently inaccessible due to federal restrictions.
- The legislation would protect businesses and professionals providing services to the marijuana industry from federal penalties, covering sectors like finance, legal, insurance, marketing, and technology.
- The bill also offers protections for securities exchanges and market participants involved in listing or trading marijuana-related stocks, facilitating these businesses’ access to mainstream financial markets.
A bipartisan congressional bill that would allow state-legal marijuana businesses to list on major U.S. stock exchanges has gained a new sponsor, bringing its total support to four lawmakers.
Representative Christopher Deluzio (D-PA) signed on today to the Capital Lending and Investment for Marijuana Businesses Act, or CLIMB Act. The measure was introduced in March by Representatives Guy Reschenthaler (R-PA) and Troy Carter (D-LA), with Representative Patrick Ryan (D-NY) joining as the bill’s third sponsor last month.
Filed as H.R. 7987, the proposal is designed to give marijuana companies operating legally under state law access to major exchanges such as Nasdaq and the New York Stock Exchange. Under current federal law, state-licensed marijuana businesses remain largely blocked from these traditional capital markets, even in states where the industry is fully legal and regulated.
The legislation would also create protections for those who do business with state-legal marijuana companies, shielding them from federal penalties simply for providing services to the industry. This would include financial services, accounting, legal work, insurance, investing, marketing, real estate, technology and other professional support.
The bill would further protect securities exchanges and related market participants that list or facilitate trading involving marijuana businesses, giving the industry a clearer path to raise capital through mainstream financial systems.