Cannabis legalization in the USA in the 2024 election – Cannabis | weed | marijuana
Legalization of cannabis in the USA in the 2024 elections? Will Joe Biden and the Democrats make cannabis reform a key part of their re-election platform?
With the possible reclassification of cannabis from Schedule I to Schedule III, marijuana stocks have increased. Investors are hoping that banking reform will be passed by Congress. Voters expect the end of cannabis prohibition.
But how much of this is hype versus reality? How likely is it that cannabis legalization will be an issue in the 2024 US elections?
To get answers, CLN spoke to three experts in the field. Nawan Butt, portfolio manager at Purpose Investments, Leah Heise, founder and CEO of Gemini Twin Consulting, and Lex Corwin, founder and CEO of Stone Road Farms.
US cannabis legalization in the 2024 election
Neither Trump nor Biden are particularly pro-cannabis, says Leah Heise. However, cannabis is a “bipartisan issue that needs to be advanced.” But I don’t think the presidential election will do much to change the trajectory of this industry.”
Leah sees greater progress in Congress with the eventual passage of the SAFE Act. While cannabis reform was previously an “afterthought,” Leah finds it “encouraging that an executive branch and a legislative branch are truly engaged in the conversation about cannabis.”
But ultimately, the lack of access to capital markets and banking is the cause of the industry’s current problems. Someone giving the federal cannabis act a “seal of approval” is undoubtedly a step in the right direction. Still, Leah is skeptical that the 2024 election will be a catalyst.
Adding cannabis to Schedule III is the currently achievable goal. Whether this will lead to cross-border trade and an import/export market remains to be seen. But according to Leah, that’s exactly what needs to happen.
“We could be a world leader in exports [cannabis] products,” says Leah. “But we are completely cut off, we can’t even move products from California to the East Coast.”
Democrats must get the problem under control
Nawan Butt is also skeptical that the 2024 US elections will lead to full legalization of cannabis. Like Leah, he sees further action through the SAFE Act and possible debt restructuring.
The big event is not the 2024 election, Nawan says, but whether the DEA’s response to the cannabis redetermination is positive or negative. “The DEA should respond within 90 days,” says Nawan. “Hopefully this will give investors another boost in sentiment and show whether this is happening or not.”
However, “It will be very important for the Democrats to get this under control by 2024,” says Nawan.
The new cannabis regulation has sparked interest among lawmakers in passing the SAFE Act. Nawan says this would help Democrats “own” the issue of cannabis legalization.
The passage of banking reform will provide temporary relief to thousands of cannabis operators across the country. “If Democrats can make this an election issue in 2024, we think that would be pretty interesting.”
Of course, Democrats promised all sorts of cannabis reforms last time. Vice President Kamala Harris was a sponsor of the MORE Act.
US cannabis legalization in the 2024 election
“It’s a double-edged sword,” says Nawan. “On the positive side, they can try to get investors to jump on the cannabis bandwagon for the Democrats, following the same example as in 2020. Alternatively,” Nawan adds, “the inaction of the last four years may dissuade some voters from not wanting this to happen.”
Nawan says Democrats need to be careful about re-regulating cannabis and passing the SAFE Act. He says if the U.S. resets cannabis use and passes banking reform before 2024, Democrats could “kind of take matters into their own hands, but.” [then]they have no carrot to hold in front of their potential voters.”
What about small businesses?
Lex Corwin sees cannabis as a big part of the 2024 election. “It’s too big a deal not to be,” he says.
Lex points to the number of cannabis companies generating hundreds of millions or even billions in revenue. “These are big companies and they will soon have the lobbying power that many traditional industries enjoy.”
Cannabis legalization is inevitable; It’s just a question of who can make it to the finish line. Federal legalization or debt restructuring could trigger a massive influx of capital.
While this “essentially increases our chances of being able to compete with some of these larger operators,” it is a double-edged sword. Removing barriers means “enabling some of these huge multi-billion dollar cannabis companies” to move into less mature markets.
Additionally, some states do not have the right climate for growing cannabis. Lex mentions that New York’s indoor growers will never be able to compete with outdoor trees in California.
“It’s a big concern,” he says. “But you know, ultimately our strategy is to get into as many states as possible.” While interstate commerce has its pros and cons, Lex sees it as “an absolute game-changer.”
“Our production costs in California are a fraction of what other operators pay in virtually every other market,” he says.
This means: “We will see smaller cannabis biotech companies being acquired by big pharma.” Lex says it is already happening. The new cannabis regulation offers tax breaks, but makes pharmaceutical research and development more accessible.
US cannabis legalization in the 2024 election
Overall, however, Lex is optimistic about the future of the U.S. cannabis market and the potential for legalization. Just like Leah and Nawan.
While cannabis legalization may or may not be the focus of the 2024 US election, it’s likely that by the time Americans cast their ballots next November, cannabis will already be a Schedule III drug that banks aren’t afraid of have to touch them.
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