Recent hearings on regulation of hemp production and banking of cannabis-related revenue have resulted in volatility in cannabis stocks. The U.S. Securities and Exchange Commission (SEC) has issued a proposed rule that would require companies to disclose the amount of cash they hold for potential use as collateral against loans or other financial instruments. Hemp farming is legal in the US, but its marketing and sale is less clear-cut, and banks and financial institutions are currently barred from working with cannabis companies. CBD products cannot be sold over state lines, nor advertised as health or dietary supplements. Banking Act, which would reverse this, has bipartisan support. The CBD and marijuana industries are expected to be worth $82.6bn by 2025.
Recent hearings on regulation of hemp production and banking of cannabis-related revenue have resulted in volatility in cannabis stocks. The U.S. Securities and Exchange Commission (SEC) has issued a proposed rule that would require companies to disclose the amount of cash they hold for potential use as collateral against loans or other financial instruments. Hemp farming is legal in the US, but its marketing and sale is less clear-cut, and banks and financial institutions are currently barred from working with cannabis companies. CBD products cannot be sold over state lines, nor advertised as health or dietary supplements. The CBD and marijuana industries are expected to be worth $82.6bn by 2025.