A hot topic in the upcoming U.S. Presidential election will likely be federal regulation surrounding marijuana. Right now, cannabis remains illegal at the federal level, but over 30 states have various forms of state-level approval for either medical or recreational cannabis.
New York Governor Andrew Cuomo is pushing aggressively for approval of recreational cannabis, and now, Joe Biden has officially taken a favorable stance on cannabis legislation. Per his 110-page document released back on July 9, his platform outlined three main cannabis-related plans: 1) support federal legislation for medical marijuana, 2) let states decide on recreational cannabis, 3) decriminalize marijuana use and change the drug’s schedule classification via executive action.
All of the plans bode well for U.S. cannabis growth, especially the new regulations allowing states to make their own decisions on recreational cannabis. The plan reads as if the federal government will approve cannabis via passage of a bill such as the STATES act, which would give cannabis companies access to the banking system.
Beyond patchwork state regulations, the biggest issue for cannabis stocks is the lack of access to capital. The companies can’t utilize the banking system and can’t list on the major stock