CLIMB Act
- Bill Number
- H.R. 7987
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-18: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-10T08:07:50Z
AI-Generated Summary
Purpose
The CLIMB Act (Capital Lending and Investment for Marijuana Businesses Act) aims to protect individuals and businesses that support state-legal cannabis operations from federal penalties. It prevents federal agencies from punishing those providing everyday business services to cannabis companies and creates a legal "safe harbor" allowing stock exchanges to list and trade stocks of these companies without violating federal drug laws.
Key Provisions
- Prohibition on Federal Adverse Actions (Sec. 2): Federal agencies cannot penalize (adverse action means enforcement like fines or investigations) any person solely for providing "business assistance" to a cannabis-related legitimate business (a company legally producing, selling, or handling cannabis under state law) or its service providers.
- Business assistance includes: banking/financial services, insurance, loans/investments, accounting, real estate leasing, equipment/supplies, advertising, consulting, legal/compliance help, IT services, logistics, and securities underwriting/listing.
- Applies to individuals, companies, and entities; covers all states, D.C., territories, and tribes.
- Safe Harbor for Stock Exchanges (Sec. 3): Amends the Securities Exchange Act of 1934 to allow national stock exchanges and market participants (e.g., brokers, underwriters) to list, trade, or facilitate securities of cannabis businesses or service providers without breaking federal laws like the Controlled Substances Act.
- Defines cannabis-related legitimate business as state-legal activities involving growing, processing, selling, or transporting cannabis products (e.g., edibles, oils).
- Service providers are non-cannabis companies offering support like legal services or equipment.
- Effective Date (Sec. 4): Takes effect 180 days after enactment.
Significant Changes to Existing Law
- New Protections: Introduces first-of-its-kind federal shield against penalties for routine business support to state-legal cannabis firms, overriding conflicts with marijuana's federal Schedule I status.
- Securities Amendment: Adds a specific safe harbor to Section 6 of the Securities Exchange Act, explicitly allowing stock listings despite federal prohibitions—previously, exchanges avoided cannabis stocks due to legal risks.
Potential Impacts
- Government Agencies: Limits enforcement powers of agencies like Treasury (banking), DOJ (prosecutions), and SEC (securities), reducing ability to target supporters of state-legal cannabis.
- Citizens and Businesses: Eases access to banking, loans, insurance, and capital markets for cannabis companies and their vendors, potentially lowering costs and boosting growth in the $30B+ state-legal industry.
- Financial Markets: Enables public trading of cannabis stocks on major exchanges, attracting investors and improving transparency.
- No direct international effects noted.
Main Stakeholders Affected
- Cannabis Businesses: State-legal growers, sellers, and processors gain easier financing and market access.
- Service Providers: Banks, insurers, accountants, real estate firms, advertisers, and tech/logistics companies can serve them without fear.
- Securities Industry: Stock exchanges, brokers, and underwriters benefit from new listing opportunities.
- Federal Agencies: Face restrictions on cannabis-related enforcement.
- Consumers/Investors: Indirectly gain from industry stability and investment options.
Notable Legal, Constitutional, or Political Implications
- Legal: Bridges federal-state divide by protecting state-compliant activities without rescheduling marijuana federally; relies on existing definitions from securities and consumer laws.
- Constitutional: Supports federalism by deferring to state/tribal laws on cannabis, avoiding direct conflict with Supremacy Clause.
- Political: Promotes industry normalization amid growing state legalization (38+ states for medical/recreational), but stops short of full federal reform—could face challenges from anti-cannabis groups or in courts over drug law preemption.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Reschenthaler, Guy [R-PA-14]
Cosponsors (5)
Rep. Carter, Troy A. [D-LA-2], Rep. Ryan, Patrick [D-NY-18], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Foster, Bill [D-IL-11], Rep. Joyce, David P. [R-OH-14]
Recent Actions
- 2026-03-18: Referred to the House Committee on Financial Services.
- 2026-03-18: Introduced in House
- 2026-03-18: Introduced in House
Bill Versions
- Capital Lending and Investment for Marijuana Businesses Act — issued 2026-03-18 — PDF (8 pages)