Mar 23, 2023
During the last year, the cannabis sector has come under considerable pressure and its survival seems to be predicated on legalization in the United States (US).
The US cannabis sector is comprised of several multi-billion dollar businesses and these operators are generating serious amounts of revenue.
From banking restrictions to tax regulations, the US cannabis industry has fallen victim to the federal government. With such stringent regulations, it is a nearly impossible operating landscape for licensed cannabis businesses.
The next year is crucial for the survival of the cannabis industry. Expansion is no longer a common theme for US multi-state operators (MSOs) and this is going to be an issue for investors. Cannabis giants like Curaleaf Holdings (OTC: CURLF) (CSE: CURA) are shutting down operations in certain states and we think this theme could become the norm for the sector.
It would not take much for Congress to save the US cannabis sector and we are surprised by the lack of action. It took the government and big businesses not much time to respond to the global banking crisis. Why is the cannabis sector being left out in the dust?
Cannabis is a multi-billion industry in several states and we believe the sector is too big to fail. The post-COVID economic climate is not pretty and cannabis has been a bright spot for the economy. We believe the industry could be performing even better if it had some support from the federal government.
Although the recent trend in the cannabis sector has been negative, we consider the US market to be a long-term growth opportunity. In the near-term, we have a cautiously optimistic view on the sector and believe some operators represent very attractive long-term opportunities.
https://technical420.com/cannabis-article/is-congress-planning-to-destroy-a-multi-billion-dollar-industry/#
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