What Marijuana Investors Need to Know About This November
The success of the cannabis industry is based on new and proper legislation. Legislation often takes a long time to complete and get right. For that reason, we do not see new updates to the U.S. cannabis industry very often. But, U.S. based marijuana stocks like Scotts Miracle-Gro Inc. (SMG Stock Report), Innovative Industrial Properties Inc. (IIPR Stock Report), and Trulieve Cannabis Corp. (TCNNF Stock Report), need new laws to be able to succeed fully. With the election on the horizon, a lot of things could change in the cannabis industry very quickly.
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This will also affect marijuana stocks abroad such as Aphria Inc. (APHA Stock Report) and Cronos Group Inc. (CRON Stock Report) as they may gain the right to export cannabis to the U.S. But, as Chuck Schumer recently pointed out, marijuana legislation is a bipartisan issue. With both the House and the Senate divided more than ever, getting cannabis legislation through may be tough. Another factor to consider is the success that we have seen in the cannabis industry in the past six months.
Because of Covid, more people than ever are at home using marijuana. With this, there is a greater amount of demand for cannabis than in many years prior. In the past six months, we have seen leading pot stocks post better results than many thought possible. This has helped to highlight the importance of cannabis in the U.S. and abroad. With that in mind, let’s take a closer look at how this election could help to shift the future of the U.S. cannabis industry.
The Politics Of The Cannabis Industry
Now, it’s worth noting that the future of the cannabis industry is not in the hands of voters this November. There are no bills on the ballot this voting season that would effectively dismantle the cannabis industry. On the other hand, however, there are several bills that would shift the future of cannabis stocks and the industry as a whole for the better.
Several states are voting on whether or not to legalize marijuana domestically. In addition, we have to consider what the cannabis industry would look like under a new president. We already know that Trump has not done much for the betterment of the cannabis industry.
Will Biden Help Push Pot Stocks Forward?
With Joe Biden becoming president he has mentioned being a big proponent of the cannabis industry. In the past, Biden has not been the most staunch supporter of the cannabis industry. But, his statements on marijuana legalization have shifted in the past few years. In addition, his proposed running mate, Kamala Harris, wants to do good for those who have been wrongly incarcerated for non-violent marijuana offenses. Harris has continuously pushed marijuana legislation forward over the past few years.
As we do know, however, in order for marijuana laws to change, both the House and the Senate have to come to an agreement. With Covid, the importance of the cannabis industry has never been more forward-facing. Many states have made marijuana an essential operation in the past few months. In addition, we have seen the government come together to help pass important marijuana legislation such as the First Step Act. This act helped to reduce the amount of jail time that non-violent drug offenders would face. This is just one small example of how the cannabis industry could change in the next few months.
The Desperate Need for Laws is Pertinent to Marijuana Stock Success
In the U.S., the legislation behind cannabis has not met the needs of the people or the companies that are involved in it. For example, because cannabis is federally illegal, cannabis companies do not have access to proper banking services. This means that companies have had to work entirely in cash. This has not only created a dangerous situation for businesses, but it has made it very difficult for employees as well.
If November brings new legislation for how cannabis companies can be banked, it would be a major update to the industry as a whole. When we think about it, it truly does not make sense that the federal government would keep the cannabis industry down. States that have legalized marijuana have seen massive influxes of capital in the form of tax revenue. If the federal government were to change its stance on marijuana legislation, it would be a major deal for both parties.
The biggest update to the cannabis industry this November would be the passing of the SAFE Banking Act and the STATES Act. These two acts would help to give protection to the cannabis industry and the companies that reside within it. Both acts have to of course pass through the House and the Senate in order to succeed. With that in mind, this November could be huge for marijuana stocks and the cannabis industry at large. All we can do now is wait and hope for the best.
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