One of my favorite novelists is Philip K. Dick, the sci-fi visionary who predicted artificial intelligence, virtual reality, the Internet, and many other disruptive technologies. This past holiday weekend, I was reading his 1962 book The Man in the High Castle, which envisions a future America, when I came across this sentence and had to chuckle:

“To inspire himself, he lit up a marijuana cigarette, excellent Land-O-Smiles brand.”

That was a radical thought back in ’62. No longer.

One man who’s far from radical is Senate Majority Leader Chuck Schumer (D-NY), who has consistently voiced his steadfast support for marijuana legalization. The latest case in point occurred this week, when Schumer expressed optimism that a bipartisan marijuana banking bill would pass during this session of Congress.

The Secure and Fair Enforcement (SAFE) Banking Act seeks to reform federal banking laws and allow state-legal marijuana businesses greater access to financial services. Schumer vowed to accelerate his long-running campaign to get SAFE passed. Other Democratic senators echoed his sentiments.

A cannabis industry entrepreneur who recently spoke with these lawmakers shared this information on Twitter. Wanda James, the CEO of Simply Pure, a Colorado-based cannabis company, approached Schumer on June 20 at an event focused on higher education.

James discussed SAFE with Schumer, emphasizing the support of Black entrepreneurs in the industry for incremental reform that would allow banks and credit unions to collaborate with state-licensed cannabis businesses.

The following tweet tells the story:

In a bullish development for the marijuana industry, SAFE was reintroduced last April in both chambers of Congress. The move was spearheaded in the Senate by Jeff Merkley (D-OR) and Steve Daines (R-MT). In the House, SAFE’s leading sponsors are Reps. Earl Blumenauer (D-OR) and Dave Joyce (R-OH). Marijuana equities soared on the news.

The House has passed the SAFE Banking Act on a bipartisan basis seven times, but the bill always hit a dead end in the Senate. Despite the hearty endorsement of Schumer, the SAFE bill was never brought to the Senate floor for a vote in the previous Democrat-controlled Congress.

That may soon change. According to James, Schumer appeared confident that the marijuana bill, which recently had an initial hearing in the Senate Banking Committee, would advance and become law this year.

Different stakeholders have varying opinions on the final version of the bill, with Schumer advocating for expungement provisions and some industry representatives calling for broader financial protections.

The SAFE Banking Act is expected to receive committee markup in the coming weeks. As currently drafted, the SAFE bill aims to shield banks, credit unions, and depository institutions from federal regulatory penalties when collaborating with state-licensed cannabis businesses.

SAFE would help solve the marijuana industry’s cash woes, by allowing canna-businesses freer access to financial services. Without access to banking, marijuana businesses lack the ability to get loans, process credit card payments, deposit cash, write checks to suppliers, and other functions they need to perform to remain viable businesses.

SAFE also would undercut the growing black market in marijuana sales and improve the industry’s financial transparency in legal cannabis states.

Schumer and other lawmakers have discussed plans to amend the bill on the floor to include crucial criminal justice provisions, such as expungements for prior marijuana convictions.

Democrats narrowly control the Senate; Republicans narrowly control the House. The Democratic party has proven to be marijuana friendly.

The GOP leadership in both chambers skews toward social conservatism and an anti-pot stance. However, attitudes within the party are changing. Republican lawmakers can read the polls, which consistently show overwhelming support among American voters across the political spectrum for marijuana normalization.

If SAFE were indeed to pass Congress, it’s almost a certainty that President Biden would sign it into law. SAFE’s enactment would serve as a “profit catalyst” for marijuana equities.

Pot stocks as a whole have been languishing this year, due to the broader bear market. But now that the S&P 500 and NASDAQ have officially entered bull market territory, conditions are more favorable for the cannabis sector’s next leg up.

WATCH THIS VIDEO: Cannabis Legal Reform Rolls On

As cannabis cements its status as a consumer staple, some pot stocks are superb investments. But many others are not. You need to conduct due diligence. That’s where my publication, Marijuana Profit Alert, comes in. By applying my proprietary screening methodologies, I pinpoint for subscribers the most attractive plays on the psychotropic revolution. To learn more, click here.

John Persinos is the chief investment strategist of Marijuana Profit Alert.

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