WASHINGTON–With the final tally in Georgia’s special election tipping the Senate to Democratic control by the razor thin margin of VP-Elect Kamala Harris’ tie-breaking vote, analysts are now focused on what it might mean moving forward, including for credit unions.
Two areas credit unions will be watching are federal laws related to cannabis and additional stimulus/legislation for electric vehicles, in addition to other changes at the agency level, such as the CFPB.
As more and more states have legalized cannabis usage over the last decade credit unions and their trade groups have pressed Congress to change federal laws that make cannabis illegal. As a result, most credit unions have declined to serve cannabis-related businesses due to the federal threat, while those that have taken the risk have gone to great—and expensive—lengths related to compliance.
Democrats have been more inclined to change federal law, and members of both parties have found the potential income from taxation to be another reason for making the change.
Wall Street is already anticipating a more favorable environment for cannabis businesses. CNN Business reported cannabis-related stocks have soared in the wake of President-Elect Joe Biden’s election and the expansion of legalized marijuana for recreational and/or medical use by voters in several more states.
Support for EVs
Another industry expecting a more favorable administration and Congress is alternative energy, including electric vehicles (EVs). Additional support, such as tax incentives, for EVs would have an effect on credit union auto loans.
“Investors were betting that the blue wave will lead to a green wave too,” CNN Business added.
But the report noted all that comes with a caveat.
"The Democrats' small lead in both the Senate and the House will make it tougher than many believe to pass tax hikes, impose regulation and enact some of the other market unfriendly policies that investors have been worried about," David Bahnsen, chief investment officer with The Bahnsen Group, said in a report that was quoted by CNN Business.