The Biden administration advises applicants not to invest in cannabis companies. Is there federal legalization behind it?

By Nina Zdinjak

The Biden administration recently expanded its employee conduct guidelines to potentially deny security clearance to people who have supported marijuana-related deals, Politico reported.

“Eligibility may be adversely affected if an individual knowingly and directly invests in stocks or business ventures specifically related to marijuana growers and retailers,” the document obtained by Politico said. “Decisions to intentionally invest in such activities could reflect questionable judgment and an unwillingness to comply with laws, rules and regulations.”

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RELATED: President Biden’s SOTU speech – Another bad night for marijuana

It appears the federal government is working to update its human resource policies to keep pace with the seemingly unstoppable cannabis industry, as 37 states and the District of Columbia have already legalized marijuana for either medical or recreational use, or both .

mixed signals

President Joe Biden’s White House seems to be taking a kind of looser stance on cannabis use than its predecessors. Shortly after taking up residence in the Oval Office, Biden issued a memo stating that prior marijuana use would not automatically disqualify applicants.

However, this did not actually happen. Last year, several White House staffers were fired for past cannabis use.

Therefore, the new guide makes things even more confusing. On the one hand, the presentation states that any cannabis-related investment “by a diversified investment fund publicly traded on a U.S. stock exchange” should be considered unknowingly made, but on the other hand, at the end of the presentation, it clearly states, “DON’T KNOW IS NOT AN EXCUSE.”

In addition, the updated guidance notes that “the new guidance also states that ‘disposition or divestment of intentional direct investment in such activities should be considered an extenuating circumstance’.”

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The chaos continues… or is it a hint of federal legalization plans?

The real question here is: Which cannabis stocks is the White House alluding to? It is well known that American cannabis companies cannot trade on major US exchanges because they are not federally legal companies. This means that US-based marijuana companies are usually listed on the Canadian Stock Exchange or a subsidiary exchange in a country where marijuana is legal.

RELATED: Apple Joins Amazon in Supporting Legal Weed – What Does It Mean for the Marijuana Industry?

Neither the NYSE nor the NASDAQ exchanges accept companies selling cannabis in the US, even if they operate in states where adult use is now legal for the simple reason that federal laws take precedence over state laws.

Some major Canadian cannabis companies like Tilray (NASDAQ:TLRY) and Hexo (NASDAQ:HEXO) are listed on these exchanges. When it comes to their US operations, they don’t touch the cannabis plant, instead remaining focused on hemp-derived CBD.

Here’s the question

Could it be that the release of new guidance hints at possible or imminent federal legalization, with the government intending to be policy-prepared to avoid conflicts of interest?

Well, anything is possible.

Finally, during his 2020 presidential campaign, Biden said repeatedly that he wanted marijuana decriminalized, as well as automatic overturning of previous cannabis convictions.

After a full year in the Oval Office, Americans haven’t seen either, so maybe the President has finally decided to make good on his campaign promise.

This article originally appeared on Benzinga and has been republished with permission.