For those who live in the U.S., 2020 is an important year for politics. This is the year that we either reelect the current president or vote in a new one. With election season in full swing, what could this year’s Presidential race mean for pot stocks? Super Tuesday, the day in which the largest number of states host primary elections, is only one week away. With that date upon us, the potential for cannabis reform to reach the federal level could soon be in reach. We all know that cannabis reform would be great news for marijuana stock investors. Currently, the two frontrunners for President according to recent polls are Donald Trump and Bernie Sanders. Both candidates have vastly different views on pretty much everything, which makes them difficult to compare.
But, as new questions are being asked to these two, the question of whether or not cannabis will be on their agenda continues to come up. On one hand, we have Bernie Sanders, a hyper-liberal senator from Vermont who has spent his time touting pseudo-socialist policies. On the other hand, the current president, Donald Trump, has not stated much in regard to whether or not he wants to interfere with the current way the cannabis industry is run. So, it’s time to take a closer look at what both of these 2020 presidential candidates could do for the marijuana industry.
What Would Happen To Marijuana Stocks If Bernie Sanders Wins
Although Bernie Sanders may not be the most ideal choice for investors given his implementation of expensive federal policies, his stance on weed could change that sentiment around. Currently, there are 11 states in the country that have legalized cannabis for those 21 and up and 33 states where cannabis can be purchased medically. This fragmented market means that states are left to decide their own marijuana fates. But, Sanders has come along stating that he intends to end the federal confusion that is current cannabis policy. This could be great news for pot stock investors and the industry at large.
Sanders has stated that he has a very well thought out plan for how he wishes to legalize cannabis federally. The first step he states is to put in an executive order that would effectively end federal cannabis prohibition. This is the easiest path to take and would most likely gain the most support as almost 70% of the American population supports cannabis legalization. In addition to this, Sanders states that he would like to expunge the criminal records of non-violent marijuana-related offenses. This is an equally important step as legalizing marijuana alone would only be half of the battle.
What makes Sanders plan so interesting is that he plans to take the tax revenue from cannabis sold, and then reinvest it into the industry. With this, he plans to offer incentives for smaller companies to get a piece of the pie, and not leave all the opportunity up to big tobacco. It is quite clear that Bernie Sanders is a staunch supporter of marijuana legalization, but what about Trump?
What Would Happen To Pot Stocks If Donald Trump Wins
Say what you will about Donald Trump, but the 45th president has presided over an incredibly strong stock market. Pot stocks have risen quite substantially in value during his time in office which may or may not be a direct result of his presidency. But, in order to maximize his chances of winning a second time, Trump has to choose a stance on whether or not he would like to legalize cannabis at the federal level. Trump has stated that he wishes to remain on the side of the public’s opinion on the matter.
The largest issue currently is the fact that cannabis is a Schedule I narcotic. This means that cannabis companies have a tough time operating on a large scale in the U.S. But, pot stock investors and cannabis business owners alike are open to the idea of national legalization of cannabis, so why has nothing changed? Well, Trump has stated that he is in support of giving states the right to choose. This means that he has not further criminalized production or sales of cannabis, but has instead taken a hands-off approach.
As we move further into 2020, this hands-off approach may not be the best for the cannabis market. Trump has stated his full support for medicinal marijuana, but he has not mentioned whether or not he would begin any process to legalize recreational cannabis. So for now, Trump’s policies don’t look like they are subject to change any time soon. This leaves pot stock investors somewhat up in the air as to what 2020 could look like for the cannabis industry.
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