Jul 21, 2022
Although the United States has the largest market share of the global cannabis industry, the federal government has been unable to pass legislation to legalize or decriminalize the plant.
So far this year, several members of Congress have submitted pro-cannabis legislation and we are favorable to this trend. With midterm elections around the corner, we expect to see a larger focus on advancing pro-cannabis legislation by members of Congress and want our readers to be aware of this.
During the last two years, we have seen a large increase in the number of states that allow for the sale of recreational cannabis. We consider the recreational cannabis legalization trend to be a major potential catalyst for the US market and are bullish on how the sector has evolved since 2020.
From rising geopolitical tensions to higher-than-expected inflation, the global economy faces several near and long-term challenges. We believe the legalization of cannabis would create a new taxable revenue stream for the government and will monitor how legislation advances in Congress.
Although we would be ecstatic to see pro-cannabis legislation passed by Congress before midterm elections, we do not expect to see any bill approved before the end of the calendar year.
According to a poll by Pew Research Center, 91% of US adults said that medical and recreational cannabis should be legal, while 60% said that only medical cannabis should be legal. The poll showed that approx. 8% of US adults believe that cannabis should not be legal and we find the data points to be very much in favor of the legalization of cannabis.
Cannabis is one of the few topics to have bipartisan support in the US and we find this to be significant. In a world where political parties are fighting each other on very important topics, we believe the positive view on legalizing cannabis is a bullish indicator for the sector.
During the last five years, there has been a significant increase in the amount of Canadian cannabis companies that have invested in US multi-state operators and high-profile brands. We believe the writing is on the wall for the legalization of cannabis and it is just a matter of time until the plant is no longer classified as a Schedule I narcotic by the Drug Enforcement Agency (DEA).
https://technical420.com/cannabis-article/will-the-u-s-government-finally-get-its-act-together-and-pass-cannabis-legislation/#
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