The New York Stock Exchange (NYSE) and Nasdaq are intensifying their competition to list U.S. marijuana companies as federal regulations affecting the industry evolve. This competition, dubbed "listing wars," comes as U.S. cannabis businesses, which have long faced federal restrictions on banking services, are beginning to gain access to capital markets.
Recent federal actions have paved the way for these companies to seek public listings. In December, a Trump administration executive order reclassified marijuana from Schedule I to Schedule III of the Controlled Substances Act, acknowledging its medicinal potential and easing its classification relative to substances like heroin. This was further codified into law by the Department of Justice and the Drug Enforcement Administration in April. As a result, U.S. marijuana companies can now access capital markets by registering with the DEA as medical companies, despite the ongoing complexities of state-level legalization versus federal prohibition.
The U.S. cannabis industry, estimated at $50 billion, is projected to reach nearly $100 billion annually by 2030. The NYSE has taken an early lead in securing listings, with Glass House Brands, a California-based cannabis grower and manufacturer, officially listing on the exchange on June 30. Glass House executives are scheduled to ring the NYSE closing bell. The NYSE also recently listed Trulieve, a Florida-based cannabis operator, after facing competition from Nasdaq.
Representatives from Glass House indicated that while they had been in discussions with the NYSE for months, Nasdaq approached them highlighting the speed of their listing process. A Nasdaq spokesperson stated there are no "fast track" approval processes, while a NYSE press official did not comment. Listings are a significant revenue stream for exchanges, and companies seek them to demonstrate compliance with standards, enhance liquidity, and gain branding opportunities. Traditionally, Nasdaq has been the primary listing venue for major technology firms like Nvidia, Microsoft, Apple, and Amazon, while the NYSE is dominant for financial, energy, and healthcare companies.
Despite their traditional strengths, both exchanges are actively competing for listings, including poaching companies from each other. Nasdaq recently attracted Walmart, a move described as the largest "switch" in exchange history. Factors influencing these decisions include listing fees, which can exceed $500,000 annually for the NYSE and less than half that for Nasdaq, as well as Nasdaq's reputation for technology, which attracts non-tech companies seeking association with leading tech firms.
The competition for listings extends to prominent companies in the artificial intelligence sector, such as OpenAI and Anthropic, which are expected to go public soon. The cannabis industry represents another significant battleground as federal barriers to market access diminish. Some executives in the cannabis industry anticipate further deregulation, potentially moving marijuana to Schedule IV or V, which could signal de facto legalization and fully open capital markets for recreational cannabis products.