Taking risks on new companies is a strategy many investors employ to look for optimal returns, and according to some, the cannabis industry provides just such an opportunity. 

The cannabis industry was valued at $9.1 billion in 2020 and is expected to grow to $70.6 billion by 2028, according to Grandview Research.

Marijuana is legal in 33 states for medical and/or adult use, but it’s illegal at the federal level, making it difficult for cannabis businesses to find banking or other financial institutions to serve them.

Brokerage firms also are tightening the rules for which cannabis businesses they’ll serve and which they won’t.

Some Are Bowing Out

Last November, JP Morgan Chase & Co. (NYSE: JPM) told its brokerage clients it will no longer allow them to buy stocks in U.S. cannabis companies that have a “direct nexus to marijuana-related activities” and are not listed on the Nasdaq Stock Exchange, the New York Stock Exchange or the Toronto Stock Exchange.

“J.P. Morgan (JPMS) has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by certain …

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