Using Cannabis for medicinal purposes is legalized in Canada. The Cannabis Act came into effect on 17th October 2018. Since then the use of Cannabis for recreational purposes is permissible in the country. Canada is the second country in the world to formally legalize the cultivation, possession, acquisition, and consumption of cannabis and its by-products. It is normal for this question to arise in your mind: What about the United States?
In the US, marijuana is considered a Schedule I drug under the Controlled Substances Act. This is still illegal under the federal government. However, many states have decriminalized the use of marijuana. The pharmaceutical-technology states that for many decades, the US Drug Enforcement Agency (DEA) has resisted pressure to re-class cannabis from Schedule I. This has created barriers to using marijuana in medical research. But, 35 states of the US have legalized marijuana for medicinal purposes and 15 have legalized it for recreational purposes.
Changing Scenario after Biden’s Win
According to a Pew Research Survey, two-thirds of Americans say they use of marijuana should be legal. The share of U.S. adults who oppose legalization has fallen from 52% in 2010 to 32% today. The percentage of people supporting the legalization will keep on increasing. One reason is the medicinal and other recreational advantages it offers to the world. Millions of Americans are already legal medical marijuana patients. Healthcare facilities use this drug for Alzheimer’s disease, glaucoma, Crohn’s disease, multiple sclerosis, and other conditions.
The Trump administration allowed states to legalize marijuana. Also, no actions were taken for an anti-cannabis stance. So it may seem that legalizing marijuana at a federal was not a priority of the Republicans.
Cannabis Stocks under Biden’s Presidency
On 20th January 2021, Joe Biden was elected as the 46th President of the United States of America. The liberal views of the democrats on cannabis legalization led to bullish sentiments in the cannabis industry. Yahoo Finance says that the Democratic party calls for three specific changes. The first is the full legalization of medical marijuana. The second is the removal of cannabis from the list of Schedule 1 illegal narcotics. Lastly, explicit support for individual states to set their own cannabis policy with Justice Department interference.
After this win, stocks like Canopy Growth and Tilray rose 10% in pre-market sessions and 25% in pre-market activity, respectively. Pharmaceutical sites manufacturing controlled drug substances need a license issued by the DEA. If marijuana legalization and de-criminalized can attract more cultivators and boost production in the process. It will also give a boost to the field of medical research.
Furthermore, there are expectations that Congress would pass several pr-cannabis bills. This will make the overall functioning and operations of the industry smooth and efficient. Like, the SAFE Banking Act will allow banks to interact with cannabis companies without the fear of legal actions. The STATES Act would allow states to legalize cannabis without the risk of federal interaction.
Final thoughts on Marijuana stocks
The legalization of marijuana will prove beneficial to the field of medicine and research. Additionally, the growing marijuana sector will also contribute to creating job opportunities in the country.
Some sources predict that the global legal marijuana market size could grow up to USD 73.6 billion by 2027. The recent circumstances in the US look more favorable for the cannabis industry than ever before.
Marijuana legalization or not is certainly still a ‘question mark’. But President Joe Biden and Vice President Kamala Harris are a ray of hope for the cannabis companies. While most companies are located in Canada, any change in law will help the country transact better.
From a global perspective, the cannabis industry has a long way to go. The election of Joe Biden could be a catalyst to the growth of the Cannabis industry.