As investors in cannabis, Poseidon has a rich history of hitting the road and applying a boots-on-the-ground approach. We enjoy meeting with people, seeing local market dynamics, and investigating new opportunities.
This week's trip to Washington, D.C. proved to be highly informative and productive as we met with various trade groups and senators. It's been too long since we last visited the U.S. Capitol, and the progress we witnessed is encouraging.
While the cannabis industry clamors for change, it's important to recognize that the pace of change in D.C. differs significantly from that of private industry or public perception. Nonetheless, we are delighted to see national-level groups acknowledging cannabis and the dichotomies we currently face.
Let's delve into a few key highlights from our meetings:
- As we've previously covered, the historic Senate hearing on the SAFE Banking Act was met with positive sentiment from several senators we spoke with, including those who participated in the hearing.
- While frustration lingers over the events of last year, members of Congress note that significant progress was made in late 2022 and has continued into 2023. We extend our gratitude to Republican Senator Steve Daines from Montana, in particular, for his dedicated efforts on this initiative.
- Notably, this is the first time the Senate is proceeding with a regular order on banking reform, instilling confidence among Senators that a floor vote will take place.
- While legislative action always carries risks, the industry acknowledges the importance of keeping the bill focused and avoiding unnecessary complications. Both parties seem to lend support to this approach, leaving room for negotiations.
- Trade groups have identified SAFE Banking as their top priority in 2023 and are actively working to build more support, highlighting the industry's commitment to progress.
- SAFE Banking is more than a cannabis reform initiative; it is a public safety and small business initiative. As more states legalize, Senators are seeing the need for reform as it impacts constituents in their own states.
- American Bankers Association (ABA) CEO Rob Nichols is collaborating closely with Senator Daines to help inform and educate Republicans and Democrats about the practical reasons to support the SAFE Banking Act. Although the regional banking crisis and debt ceiling have absorbed the ABA's attention, SAFE remains a significant focus for them.
- Senator Daines is resolute in his dedication to ensure the success of the SAFE Banking Act. The alignment surrounding this issue allows it to progress through the Senate in regular order, a noteworthy feat in today's political climate.
- Insiders agree that there is no strong formal opposition to SAFE, and any dissenting voices are primarily from individuals who simply oppose anything related to cannabis. Rather than investing efforts in changing their stubborn views, we will focus on building sufficient support.
- The key to success will be garnering sufficient Republican backing and avoiding an overloaded bill. Senate Majority Leader Chuck Schumer hopefully understands the need to refrain from loading the legislation with unpopular features, avoiding a repeat of past missteps.
As we move forward, we will closely monitor developments over the next 60-90 days, particularly as attention shifts back to the SAFE Banking Act following the debt ceiling talks.
