New Bill Could Allow Cannabis Companies to List on Nasdaq and NYSE

A new bipartisan bill in Congress could be a game-changer for the cannabis industry, potentially allowing marijuana businesses to list on major U.S. stock exchanges like Nasdaq and the New York Stock Exchange. The proposed legislation, known as the Capital Lending and Investment for Marijuana Businesses (CLIMB) Act, aims to open the door for cannabis companies to access major financial markets while also protecting the businesses that work with them.

The bill is being sponsored by Representatives Guy Reschenthaler (R-PA) and Troy Carter (D-LA) and is designed to solve one of the cannabis industry’s biggest ongoing problems: access to banking, investment capital, and financial services. Because marijuana is still illegal at the federal level, many banks, investors, and financial institutions have been hesitant to work with cannabis companies, even if those companies are operating legally under state law.

One of the most important parts of the CLIMB Act is that it would provide legal protections, often called “safe harbor” for financial institutions and service providers that do business with cannabis companies. This includes banks, insurance companies, accountants, real estate companies, software providers, marketing agencies, legal teams, and even logistics and transportation companies. Essentially, the bill would make it much safer for mainstream businesses to work with the cannabis industry without fear of federal punishment.

But the biggest headline is that the bill would allow cannabis companies to be listed and traded on major U.S. stock exchanges like Nasdaq and the New York Stock Exchange. Currently, most major U.S. cannabis companies cannot list on these exchanges because of federal prohibition. Instead, many cannabis companies trade on Canadian exchanges or smaller over-the-counter markets. If the CLIMB Act passes, it would give cannabis companies access to major investment capital, institutional investors, and the credibility that comes with being listed on major U.S. exchanges.

The bill also states that federal agencies would not be allowed to take action against a person or company solely for providing services to a legal cannabis business. This includes providing loans, investing capital, offering insurance, leasing property, providing equipment, offering marketing and advertising services, providing IT and software support, packaging, transportation, and even underwriting and distributing cannabis company stock.

This legislation comes at a time when the cannabis industry is also waiting on another major federal decision: whether marijuana will be moved from Schedule I to Schedule III under the Controlled Substances Act. If that happens, cannabis companies would be allowed to take standard federal business tax deductions, which they are currently denied under IRS code 280E. That change alone could significantly increase profitability for many companies in the industry.

The CLIMB Act does not fully legalize marijuana, but it represents a major step toward normalizing the cannabis industry within the U.S. financial system. If passed, it would give cannabis businesses access to the same financial tools, investment opportunities, and growth potential as traditional industries—something cannabis entrepreneurs have been fighting for years to achieve.

By John Smith