The New York Stock Exchange and Nasdaq are actively competing to list U.S. marijuana companies as regulatory changes create new opportunities for the burgeoning industry. This intensified competition, known as "listing wars," follows a shift in federal policy that has historically limited access to banking services and capital markets for cannabis businesses.
Recent federal actions have begun to dismantle these barriers. In December, an executive order reclassified marijuana from a Schedule I controlled substance to Schedule III, allowing for its use in medicinal applications. This was further codified into law by the Department of Justice and the Drug Enforcement Administration in April. As a result, U.S. cannabis companies, which previously faced significant hurdles due to federal regulation despite widespread state-level legalization, can now access capital markets by registering with the DEA as medical companies.
The U.S. cannabis industry, currently valued at approximately $50 billion, is projected to nearly double to $100 billion annually by 2030. This growth potential has spurred a race between the NYSE and Nasdaq to attract these listings, opening the sector to major institutional investors.
The NYSE has taken an early lead in attracting marijuana companies. Glass House Brands, a cannabis grower and manufacturer, officially listed on the NYSE on June 30. Executives from the company are scheduled to ring the closing bell at the exchange on Friday. Earlier in the spring, the NYSE also listed Trulieve, a Florida-based cannabis operator, following what sources described as competition from Nasdaq. A representative for Glass House indicated that Nasdaq had approached the company, highlighting the potential speed of their listing process.
While a Nasdaq representative stated there is no "fast track" for approvals, listings are a crucial revenue stream for exchanges. Major companies seek listings on established U.S. exchanges to gain credibility and demonstrate compliance with rigorous standards. These exchanges also offer enhanced liquidity and branding opportunities for listed companies.
Historically, Nasdaq has been the preferred exchange for major technology firms such as Nvidia, Microsoft, Apple, and Amazon, while the NYSE has dominated listings in sectors like banking, energy, and healthcare. However, both exchanges engage in attracting companies from competitors. For instance, Nasdaq recently secured Walmart's listing, a move away from the NYSE. Cost can be a factor, with NYSE listing fees potentially exceeding $500,000 annually, compared to Nasdaq's somewhat lower fees. Additionally, Nasdaq's reputation for technology has attracted non-tech companies seeking association with prominent tech firms.
The competition for listings is expected to intensify, with future battles anticipated for artificial intelligence companies like OpenAI and Anthropic. The cannabis sector has now emerged as another significant battleground for exchange listings following the recent regulatory adjustments.
Industry insiders anticipate that former President Trump may further ease regulations by moving cannabis from Schedule III to Schedule IV or V, which could be interpreted as de facto legalization and fully open the capital markets for U.S. cannabis companies to invest in recreational product development.