The progress of proposed cannabis banking reforms in the United States represents another step toward widespread acceptance of the industry, according to one analyst.

On Wednesday, a U.S. Senate committee voted to advance the Secure and Fair Enforcement Regulation Banking Act (SAFER) for a full vote on the Senate floor. If passed, the legislation would allow cannabis firms to access insurance and other financial services instead of relying on cash, which makes them targets for crime.

“We still think there’s a lot of work to do,” Scott Fortune, a senior research analyst at Roth Capital Partners, told BNN Bloomberg Wednesday. “It was a 14 to 9 vote approval, so it’s not very overwhelmingly favourable. It’s a very positive step forward for the space overall.”

It’s latest in a string of positive developments for cannabis companies in the U.S.

Last month, the U.S. Food and Drug Administration recommended moving cannabis from a Schedule I drug to a Schedule III, which would classify it in the same category as anabolic steroids and lessen the tax burden on the industry.

“We believe the DEA will move this to a schedule III drug, which the biggest benefactors will be the U.S. cannabis operators … where they can now write off operating expenses,” Fortune said.

“This really opens it up for the U.S. cannabis plants to get new institutional investors.”

If the changing laws in the U.S. come to fruition, it could mean Canada companies would expand south.

In a statement, Omar Khan, chief communications and public affairs officer at Canadian cannabis company High Tide, called the bill a “milestone” for cannabis businesses hoping to operate more widely in the U.S., and encouraged lawmakers to bring the legislation to a Senate vote quickly. 

“If passed into law, this bill will provide further legitimacy, improve employee and customer safety, and offer much-needed guidance for commerce,” he wrote.

“As a NASDAQ-listed company, we are also hopeful that the DEA can expedite its review of the … recommendation to move cannabis to Schedule III, and that the regulatory guidance accompanying rescheduling could create room for major North American securities exchanges to finally list U.S. plant-touching businesses.”

Fortune said High Tide, makers of Canna Cabana and Fastendr, is primed for such an expansion after pulling back a bit in Canada to generate more cash flow.

“High Tide would be able to potentially move their model down into the U.S. and replicate it as a retail model player,” he said.

With files from Bloomberg News