US Marijuana Companies Spark Competition Between Stock Markets

There’s a growing competition—often referred to as the “listing wars”—between the two leading US stock exchanges, the New York Stock Exchange (NYSE) and Nasdaq, as they court marijuana companies. Recent shifts in federal regulations are fueling this interest, particularly regarding initial public offerings (IPOs) for Pot Inc.

It seems the long-standing federal hurdles that prevented these companies from accessing banking services are starting to crumble. Back in December, an executive order signed by Trump reclassified marijuana as a Schedule III controlled substance, downgrading it from its previous status alongside heroin and allowing for its medicinal use. This change was later codified into law by the Department of Justice and the Drug Enforcement Administration in April.

This means that US cannabis businesses, which were historically barred from banking due to federal regulations despite many states legalizing marijuana, can now tap into capital markets—provided they register as medical companies with the DEA.

In addition, there’s an intense race brewing between the NYSE and Nasdaq to list these previously sidelined marijuana companies. The cannabis industry, currently valued at $50 billion, is projected to nearly double to $100 billion annually by 2030, which is attractive for both exchanges. Major institutions are expected to broaden their investor base as these companies become accessible.

The NYSE is currently leading the charge in this emerging sector. Glass House Brands, based in Long Beach, California—a company involved in weed cultivation and cannabis product manufacturing—officially made its debut on the NYSE on June 30. Company executives are set to ring the closing bell at the exchange this Friday.

A few weeks prior, the NYSE also welcomed Trulieve, a Florida-based cannabis operator, after a competitive back-and-forth with Nasdaq. According to a representative from Glass House, discussions with the NYSE had been going on for a few months when Nasdaq expressed interest, emphasizing how swiftly they could facilitate a listing.

An NYSE press official did not respond to requests for comment, while a Nasdaq rep maintained that there are no expedited approvals for listings. It’s important to note that listings are a crucial revenue stream for exchanges. Even though stocks can technically trade anywhere—including private trading venues—the prestige of a listing on a top US exchange suggests compliance with necessary standards.

This listing also brings expectations of increased liquidity and enhanced branding opportunities. Historically, Nasdaq has been home to major tech companies like Nvidia, Microsoft, Apple, and Amazon; the NYSE, in contrast, typically attracts players in finance, energy, and healthcare.

The competition is fierce, with both exchanges actively trying to lure companies from one another. For instance, Nasdaq recently succeeded in attracting Walmart away from the NYSE, marking one of the largest switches in exchange history.

Factors like costs play a significant role in these decisions. Listing on the NYSE can cost more than $500,000 annually, whereas the Nasdaq charges about half that. Additionally, Nasdaq’s reputation as a tech-centric exchange appeals to non-tech companies wanting affiliation with some of the hottest names in capital markets.

A significant contest is brewing over the expected IPOs of AI companies OpenAI and Anthropic in the coming months. However, with marijuana companies now gaining more access to the markets, they present another battlefield. Executives from Pot Inc. have expressed optimism that marijuana will soon move from Schedule III to either Schedule IV or V. If this happens, it would effectively legalize cannabis, thereby opening capital markets fully to US pot companies looking to invest in recreational products like joints and gummies.