Will Marijuana Stocks Benefit With Better Cannabis Legislation?
The future of the cannabis industry is heavily dependent on better cannabis legislation. With better cannabis laws in place much more progress can be made. For example, right now many cannabis stocks to watch are trading on speculation of what the next phase of cannabis legislation will be. Some investors feel marijuana stocks will increase in market momentum the day of ending cannabis prohibition.
With marijuana being federally legal it will allow the sector to reach its full potential. For instance, certain marijuana stocks that trade on the OTC would now be able to uplist to the NYSE or the Nasdaq with marijuana being federally legal. As well it will allow for marijuana companies in other regions to do business in the U.S. Recently the U.S. cannabis industry generated record revenue of $17.5 billion in legal cannabis sales. The global cannabis market is growing at a fast pace that many cannabis companies are preparing for.
Some investors feel when the U.S. goes fully legal it will help build more momentum for Canada’s marijuana market. Having the right laws in place for cannabis is essential for having a thriving market. Without the right framework in place, it becomes difficult to see the growth and success that could be reached with the proper laws in place.
Right now MSO marijuana companies due to working in other cannabis markets are set for the future of cannabis legislation. On a state-level cannabis laws have come a long way which has allowed markets to be established even while illegal under the eyes of the federal government. Currently, there is still much progress to be seen as federal cannabis reform is even closer than some think.
MSO Cannabis Stocks Are Leading The Way
Currently, there are pieces of cannabis legislation that are still waiting to be voted on. Towards the end of March it possible that the SAFE Act will be presented to the House yet again. For those who don’t know the Safe and Fair Enforcement Banking Act or SAFE Act would allow for financial institutes to take cannabis money. Because marijuana is still federally illegal banks can not take the money made from cannabis sales. This new bill would have a lot of advantages for MSO cannabis companies stated by the BTIG.
Going off of talks with people in Washington by bringing this piece of cannabis legislation back up to the House once again will have its advantages. This reintroduction would need to be before April 1st which would mean it would avoid committee hearings, speeding up a vote on the measure. The BTIG feels that due to the bill’s bipartisan support the SAFE Act has a chance to be approved by both the House and Senate.
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How Will Multi-State Operators Benefit From Better Cannabis Laws
According to the BTIG, this new cannabis bill can help multi sate operators in a few ways. For one cannabis companies would be able to put cash into U.S. financial institutions. Secondly, cannabis businesses would be able to use a credit card in addition to cash which can lead to more spending. Also, it would lead to a rise in public safety; and increased public health. This would lead to reducing the transfer of dirty cash.
“Separately, the MORE [Marijuana Opportunity Reinvestment and Expungement] Act could also get reintroduced by April 1st, but would likely have a much more difficult path to passing in the Senate,” according to the note.
With better cannabis laws in place, a great deal of growth can occur for the industry. Leading to more than just the SAFE Act. Legal states such as Illinois have used part of the tax money generated from cannabis to help rebuild communities. There is a lot of things the cannabis industry can contribute towards with the right regulations in place.
As 2021 brings in new ventures it looks like the cannabis industry is working to become even stronger. So with this time will tell what will happen as things begin to develop more. With the market in a slight downtrend, some investors are looking for the right MSO marijuana stocks. This will give people a chance to potentially see profits as better cannabis legislation starts to become more established.