Benzinga | Jan 31, 2022 02:52PM EST

Cannabis Banking Act Added To Other Legislation By Rep. Perlmutter, MSO Shares Rise On News

* Rep. Ed Perlmutter (D-Colo.) has attached the SAFE Banking Act, which would allow U.S. financial institutions to do business with legal cannabis entities, as an amendment to the America Competes Act.

* Perlmutter made the announcement in a Tweet Friday afternoon.

* "Cannabis-related businesses -- big and small -- are in desperate need of access to capital & the banking system in order to operate in an efficient, safe manner & compete in the growing global cannabis marketplace," Perlmutter wrote.

* The SAFE Banking Act was approved by the House in September 2021. However, in December, it was stripped from part of a defense funding bill in the Senate.

* Meanwhile, shares of several multi-state operators rose on the news. They include Trulieve (OTCQX:TCNNF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Curaleaf (OTCPK: CURLF), Verano Holdings (OTCQX:VRNOF), Acreage Holdings (OTCQX:ACRHF), and Jushi Holdings (OTCQX:JUSHF).

* Although even if the SAFE banking act is approved in the House this year, it's uncertain how it will fare in the Senate.