Federal Marijuana Stock Exchange Bill Gains Sixth Bipartisan Sponsor
- The Capital Lending and Investment for Marijuana Businesses Act (CLIMB Act), a bipartisan bill, aims to allow state-legal marijuana businesses to access major U.S. stock exchanges like the NYSE and Nasdaq.
- Rep. David Joyce (R-OH) recently became the sixth sponsor, joining a bipartisan group of lawmakers including both Republicans and Democrats in supporting the bill.
- Currently, federal restrictions block marijuana companies from traditional capital markets despite state legalizations; the CLIMB Act would protect these businesses from being denied access based on federal law conflicts.
- The bill would cover both medical and adult-use marijuana businesses and extend protections to service providers in the industry, helping integrate marijuana companies into mainstream finance and improve capital access.
A bipartisan proposal that would allow state-legal marijuana businesses to access major U.S. stock exchanges has gained another backer in Congress.
Rep. David Joyce (R-OH) signed on today as a sponsor of the Capital Lending and Investment for Marijuana Businesses Act, or CLIMB Act. His support brings the measure to six total sponsors in the U.S. House, including its lead sponsor, Rep. Guy Reschenthaler (R-PA).
The bill, filed as H.R. 7987, would protect state-legal marijuana businesses from being denied access to national securities exchanges solely because they operate in compliance with state marijuana laws. This would give companies a clearer path to list on exchanges such as the New York Stock Exchange and Nasdaq.
The measure has bipartisan support, with current sponsors including Republicans Reschenthaler and Joyce, along with Democratic Reps. Troy Carter of Louisiana, Patrick Ryan of New York, Christopher Deluzio of Pennsylvania and Bill Foster of Illinois.
Under current federal policy, marijuana companies remain largely blocked from traditional U.S. capital markets because marijuana remains federally restricted, even as dozens of states allow medical marijuana, adult-use marijuana or both.
The issue has received renewed attention as companies such as Trulieve move toward uplisting. Trulieve recently announced approval to list on the New York Stock Exchange under the ticker TRLV, with trading beginning June 10. However, the company said it completed a restructuring following medical marijuana rescheduling, separating operations in markets serving both medical and adult-use customers. Its remaining consolidated operations consist only of state-licensed medical marijuana facilities, according to the company.
That distinction is significant because the recent federal rescheduling order applies to FDA-approved marijuana products and state-licensed medical marijuana businesses, but not adult-use marijuana operations. As a result, companies operating in recreational markets may still face barriers unless they restructure or unless Congress changes federal law more broadly.
The CLIMB Act would take a wider approach by applying to state-legal marijuana businesses regardless of whether they operate in medical or adult-use markets. It would also extend protections to service providers that work with the industry, including financial institutions, insurers, accountants, attorneys, real estate firms, investors and technology companies.
Supporters say the measure would help bring marijuana businesses into the mainstream financial system, while giving regulated companies greater access to capital. Critics and some industry observers have questioned whether the legislation is still necessary following recent federal actions, but the limits of medical-only rescheduling have kept the debate active.