The CLIMB Act Could Finally Put Cannabis Stocks on NYSE and Nasdaq

For nearly a decade, American cannabis companies have faced a peculiar financial exile. While dozens of U.S. multistate operators [Quick Definition: Cannabis companies licensed in multiple states] (MSOs) generate hundreds of millions in annual revenue, they cannot trade on the New York Stock Exchange or Nasdaq. Instead, they're confined to Canadian exchanges or the over-the-counter (OTC) markets—a second-tier status that limits investor access and raises capital costs.

That could change with H.R. 7987, the Capital Lending and Investment for Marijuana Businesses (CLIMB) Act, introduced on March 19, 2026, by Representatives Guy Reschenthaler (R-Pennsylvania) and Troy Carter (D-Louisiana). This bipartisan bill represents the most direct legislative approach yet to tear down the regulatory walls separating cannabis from American capital markets.

Here's what the CLIMB Act proposes and why it matters for cannabis investors.

The Problem: Why Cannabis Is Locked Out of Major Exchanges
How MSOs Raise Capital Today
What the CLIMB Act Proposes
The Bipartisan Angle: Why This Matters
What It Would Change for Investors
Stock Price Impact: What Could Happen?
Likelihood of Passage
CLIMB Act vs. SAFE Banking Act [Quick Definition: Federal bill that would let banks serve cannabis businesses without fear of prosecution]: What's the Difference?
The Bottom Line

The Problem: Why Cannabis Is Locked Out of Major Exchanges

The core issue stems from federal drug scheduling. Cannabis remains a Schedule I [Quick Definition: The most restrictive federal drug classification, currently including heroin and cannabis] controlled substance under the Controlled Substances Act, making it illegal at the federal level despite legalization in 24 states and counting.

SEC listing rules don't explicitly bar cannabis companies by name. The real barrier is more subtle: the Bank Secrecy Act of 1970 and decades of regulatory guidance have created a chilling effect. Financial institutions, accountants, lawyers, and service providers fear that supporting cannabis businesses—even state-legal ones—could expose them to federal money laundering charges or asset forfeiture.

Large exchanges like NYSE and Nasdaq face reputational and regulatory pressure from the SEC and Treasury Department. Listing a cannabis company, they reasoned, might invite federal scrutiny. The result: a de facto exclusion that's left American cannabis companies with limited options.

Canadian cannabis companies faced no such restrictions in Canada and flocked to North American exchanges. U.S. MSOs, lacking that avenue, either went public on Canadian exchanges (like the OTC-listed Trulieve or Curaleaf) or stayed private longer, limiting fundraising and shareholder liquidity.

How MSOs Raise Capital Today

Current options for capital-raising are inefficient and expensive:

OTC Markets: Companies like Trulieve and Curaleaf trade on the OTC Pink Sheets, where regulatory requirements are minimal but liquidity is thin and trading costs are high. Bid-ask spreads are often wide, and institutional investors face restrictions on OTC holdings. Stock prices can be volatile and disconnected from fundamentals.

Canadian Exchanges: Some U.S. companies list on Toronto Venture Exchange or TSX Composite, but this requires navigating cross-border compliance, currency headwinds, and a Canadian investor base primarily interested in cannabis.

Private Equity and Venture Capital: Many cannabis firms rely on PE/VC funding, which is expensive due to perceived risk and limited exit opportunities.

Debt Financing: Cannabis companies increasingly turn to debt, but borrowing costs remain elevated compared to traditional industries. Lenders charge higher interest rates to compensate for regulatory uncertainty.

Self-Funding: Profitable companies like Trulieve have used operational cash flow to fund growth, limiting diversification and expansion speed.

These alternatives raise capital, but inefficiently. A NYSE or Nasdaq listing would lower funding costs, increase investor access, and provide founders with liquid exit opportunities that reward early risk-taking.

What the CLIMB Act Proposes

The bill has two key components:

1. Cannabis Company Listings

The CLIMB Act would amend federal law to allow state-legal cannabis businesses to list on major exchanges. Specifically, it would remove barriers preventing companies with cannabis operations from listing, provided they comply with state law and SEC regulations.

Companies would still face typical SEC disclosure and financial reporting requirements. They wouldn't get a pass on governance, auditing, or transparency. The bill simply removes the federal Schedule I status as a listing disqualifier.

2. Safe Harbor for Service Providers

The second prong shields financial, accounting, insurance, and advertising companies from federal prosecution for serving cannabis businesses. A bank processing payments for a state-legal cannabis retailer, an accountant preparing tax returns for a cultivation facility, or an insurance company providing liability coverage would no longer face potential federal charges.

This safe harbor is critical. Without it, banks and service providers remain hesitant to work with cannabis companies, creating a fragmented financial ecosystem. The CLIMB Act would legitimize support services, enabling cannabis businesses to access capital and infrastructure on more equal footing with other industries.

The Bipartisan Angle: Why This Matters

Congress has become more favorable to cannabis reform. The bill's co-sponsorship by Reschenthaler (a conservative Republican) and Carter (a progressive Democrat from Louisiana) signals rare alignment on a typically divisive issue.

Several factors drive bipartisan support:

Red State Growth: Cannabis markets have expanded in conservative states like Missouri and Oklahoma. Elected officials from these states increasingly see cannabis tax revenue as valuable.
Criminal Justice Reform: Conservative and progressive lawmakers share concerns about federal marijuana criminalization's racial disparities.
Banking Concerns: The current system leaves cannabis businesses vulnerable to robbery and fraud because they operate largely in cash. Even some law-enforcement conservatives favor banking access for public safety.
Economic Growth: The legal cannabis market exceeds $40 billion annually in the U.S. Legitimate industry advocates across the aisle see tax revenue and job creation potential.

Previous CLIMB Act versions (introduced in the 117th Congress) didn't advance, but the 2026 version enters a more favorable environment. Democrats control the White House (presumably), and cannabis reform has moved from fringe to mainstream among both parties' bases.

What It Would Change for Investors

For equity investors, the implications are substantial:

Increased Liquidity: NYSE and Nasdaq listing would allow retail and institutional investors to buy cannabis stocks through standard brokerage accounts. Current OTC trading is cumbersome and expensive. A major exchange listing would democratize cannabis equity ownership.

Lower Cost of Capital: Companies would access cheaper debt and equity financing, improving valuation multiples. Currently, cannabis companies trade at discounts to comparable industries, partly due to financing friction.

Institutional Investment: Pension funds, mutual funds, and index funds are typically barred from OTC holdings. A Nasdaq listing would open these capital sources, potentially driving significant inflows.

Price Stability: OTC stocks are prone to manipulation and thin-liquidity swings. Major exchange listing would improve price discovery and reduce volatility.

M&A Opportunities: Easier valuations and liquidity would facilitate mergers and acquisitions, enabling consolidation in an increasingly competitive market.

Stock Price Impact: What Could Happen?

The potential stock price reaction depends on several factors:

Positive Catalysts: Market consensus is that major-exchange listing would be deeply positive for cannabis equities. Trulieve, Curaleaf, and other leading MSOs could see significant upside on CLIMB Act passage, reflecting reduced financing costs, broader investor access, and reduced regulatory risk.

Risk Factors: The upside assumes the bill passes and faces no implementation hurdles. SEC rule-making or further delays could mute positive sentiment. Additionally, some market pessimism might already be priced in if investors expect eventual cannabis rescheduling [Quick Definition: The federal process of moving cannabis from Schedule I to a less restrictive category] or Safe Banking legislation (discussed below).

Historical Precedent: Canadian cannabis stocks surged when they listed on major exchanges. U.S. MSOs could see similar reactions, though they face higher baseline valuations and profit-taking risk.

Conservative estimates suggest major-exchange listing could revalue leading cannabis companies by 20-50%, though this is speculative and depends on execution and broader market conditions.

Likelihood of Passage

CLIMB Act passage faces headwinds:

Executive Branch Uncertainty: Federal drug enforcement agencies may resist the bill. A presidential commitment to reform would be necessary.

Regulatory Complexity: SEC and Treasury Department coordination would be needed to implement safe harbors and listing standards.

Broader Cannabis Reform: The SAFE Banking Act (which would allow banks to serve cannabis businesses without federal penalty) remains stalled. CLIMB Act might be seen as a step too far by some moderates, or unnecessary if SAFE Banking passes first.

Timeline: Even with bipartisan support, legislation moves slowly. Passage in 2026 is plausible but not assured.

Assessment: The CLIMB Act faces better odds than earlier versions, but passage is not a given. If the White House supports it and the Senate moves cautiously, 2026-2027 passage is realistic. However, investors should not count on it.

CLIMB Act vs. SAFE Banking Act: What's the Difference?

The SAFE (Secure and Fair Enforcement) Banking Act has long been cannabis reform's leading proposal. Key differences:

| Aspect | SAFE Banking Act | CLIMB Act | |--------|------------------|-----------| | Scope | Allows banks to serve cannabis | Allows NYSE/Nasdaq listing | | Service Providers | Limited protections | Broader safe harbors | | Stock Listing | Does not address | Direct focus | | Exchange Access | Indirect (via banking) | Direct | | Regulatory Lift | Lower | Higher | | Likelihood | Incremental progress | Less certain |

The bills are complementary, not competing. Both could pass. SAFE Banking Act passage would support CLIMB Act implementation (easier banking access makes listing less risky), but CLIMB Act is more ambitious and faces higher political barriers.

The Bottom Line

The CLIMB Act represents genuine progress toward cannabis industry normalization. If enacted, it would fundamentally reshape how American cannabis companies access capital, likely driving substantial revaluation and institutional investment.

Passage is not guaranteed, but the bill's bipartisan sponsorship, alignment with growing state-level consensus, and real business case for listing suggest it deserves serious consideration. Whether it advances depends on executive branch priorities, Senate dynamics, and whether the broader cannabis legalization movement gains further momentum.

For cannabis investors, the CLIMB Act is a significant catalyst worth monitoring. Its passage would be transformative; failure would perpetuate the current suboptimal capital structure. Either way, federal cannabis reform appears inevitable—it's primarily a question of timing and form.

The next six to eighteen months will be critical. If the CLIMB Act gains traction, we could finally see American cannabis companies trading alongside Apple and Microsoft. That would be revolutionary.

Pull-Quote Suggestions:

"Even some law-enforcement conservatives favor banking access for public safety.

Economic Growth: The legal cannabis market exceeds $40 billion annually in the U.S."

"Additionally, some market pessimism might already be priced in if investors expect eventual cannabis rescheduling or Safe Banking legislation (discussed below).

Historical Precedent: Canadian cannabis stocks surged when they listed on major exchanges."

"While dozens of U.S. multistate operators (MSOs) generate hundreds of millions in annual revenue, they cannot trade on the New York Stock Exchange or Nasdaq."

Why It Matters: A new bipartisan bill would let cannabis companies list on NYSE and Nasdaq. Here's what the CLIMB Act means for investors and the cannabis industry.