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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index lost 3.2 points to 118.48 Tuesday, while the Canadian Securities Exchange Composite Index gained 8.19 points to 330.51. The S&P/TSX Cannabis Index is, of course, mostly representative of Canadian cannabis stocks, whereas the five biggest stocks on the CSE Composite are all American cannabis companies.
The boost in U.S. cannabis stocks was in part the result of the fact that SAFE Banking Act provisions made it into COVID-19 legislation. The SAFE Banking Act passed the Democratic-controlled House last year but did not get passed by the Republican-controlled Senate. The provisions would allow U.S. cannabis companies to access banking services and allow their customers to use credit, which proponents say is particularly important during the COVID-19 pandemic. (Given that many retailers in other industries have temporarily banned cash payments, it is a claim that has merit, even if it is opportunistic.)
Presently, cannabis companies are unable to accept credit cards or access many banking services, as cannabis remains illegal on a federal level in the U.S. The SAFE Banking Act would not change the legal status of cannabis, but it would grant cannabis companies access to financial services.
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