The SAFE Act would disallow the federal government from punishing banks from offering services to marijuana-related businesses where it is legal, while the STATES Act would effectively eliminate federal involvement altogether in any of the states’ marijuana laws. Since the latter is more all-encompassing, it would likely come under the most scrutiny. 

According to Fagan, Democrats controlling the house marks “a fundamental shift in the U.S. legislative landscape which could usher in a period of positive cannabis reform.”

“For instance, Dems will now gain majority control of the powerful House Rules Committee, which previously acted as a dogged gatekeeper of positive cannabis reform for the past 2 years under the oversight of anti-cannabis Republican Pete Sessions,” Fagan wrote.

MJ was down just under 3% as of 11:05 a.m. ET as traders took profits prior to a Federal Reserve policy decision announcement later in the day.

Related: Marijuana ETF Jumps After Canopy Growth Buys U.S. Hemp Researcher

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