Why Democratic control is a win for the cannabis industry? The 2020 US election introduced the cannabis industry to a green wave following cannabis legalization in five states. Mississippi took a historic step in legalizing medical marijuana, and South Dakota, New Jersey, Montana, and Arizona legalized recreational marijuana.
These steps suggest a reduction in Marijuana stigmatization. Also, with the Gallup report showing that 68% of American residents support Marijuana legalization, it means national Marijuana legalization is on the way.
Vice President Kamala Harris and Rep. Jerrold Nadler brought the MORE Act to the table in July 2019. This legislation applies the Controlled Substance Act in describing marijuana and removes the criminal punishments for anyone caught possessing, distributing, or manufacturing in the federal State.
This Act contributes more to the cannabis industry’s legitimacy. It federally legalizes cannabis by ensuring it doesn’t appear under the Controlled Substance Act.
Moreover, the MORE Act allows cannabis business owners to access small business administration loans, just like other business owners. As per this Act, the Bureau of Labor Statistics needs to print cannabis industry demographic data and support experiencing War on Drugs impacts by creating a trust fund.
Yes, this Act comes with several marijuana implications, but the first bill never accessed the Senate floor. The bill died when the Congress session came to an end on January 3, 2020, with the Democratic remaining to be the only hope to pass it.
The Big News!
Cannabis remained to be a highly contested subject within the Georgia senatorial race. Kelly Loeffler, the Republican Senator, never supported Marijuana legalization and always criticized the MORE Act passing in public. Luckily, Rev.Raphael Warnock, the Democratic Senator, has discussed the War on Drugs failures in public, and he supports Marijuana legalization.
Senator David Perdue doesn’t have confidence in recreational legalization, but he reinforces Medical Marijuana. However, Perdue’s decision is not as right as that of Jon Ossoff, a Democratic opponent. Ossoff discussed why he backs cannabis legalization and even made a further step of Marijuana legalization to Georgia youth voters through TikTok.
The Democrats won Georgia’s Senate seats following the run-off elections and, therefore, took the Senate’s Majority Control. The run-off election results mean a win for the potential federal Marijuana legalization and the cannabis industry.
Does A Democrat Controlled-Congress Open The Doors For Marijuana Legalization?
The Democratic Controlled Congress is likely to support the MORE Act if the Senate introduces it to the floor and goes through the House of Representatives. Even if the bill gets a tie, Kamala Harris (Vice President) can vote yes and forward the ‘bill’ onto President Joe Biden’s desk.
Joe Biden might lack much information about marijuana, but he can sign the bill into law to avoid working against the Democratic party.
Yes, it can take months before the Democratic Controlled Congress makes any steps on federal cannabis legalization, but the number of states legalizing weed will keep growing.
Georgia’s senate run-off election results can be a clear indication that it can enter the American States that have made weed legal or the ones making steps towards cannabis legalization in 2021.
Likelihood Of Marijuana Legalization
For now, expect the Democratic-Controlled Congress to focus more on COVID-19 relief and not national marijuana legalization. Therefore, it’s up to each State to table legislation to make adult-use marijuana legal.
During the United States’ 2020 election, South Dakota, Mississippi, Montana, New Jersey, and Arizona voters accepted measures to make medical cannabis or adult-use marijuana legal in their states.
The South Dakota electors took an unprecedented step and approved medical cannabis and adult-use marijuana in their State. Other states like Virginia, New York, and Pennsylvania will likely table cannabis legalization this year.
States like Ohio, Connecticut, and Delaware will have to evaluate political headwinds but don’t get surprised if they approve cannabis legalization this year.
In January 2021, Andrew Cuomo, the New York Governor, issued his plans to make adult-use marijuana legal in his State. The Governor came up with this plan to create the much-needed income and directly back the people and communities that have suffered a significant impact for decades because of cannabis prohibition.
More About The Cannabis Legal State
Today, over 235,000,000 American residents reside in a state that has legalized cannabis in a particular form.
States will keep receiving tax benefits associated with cannabis legalization. Washington is one of the states that have legalized marijuana and recorded taxes of up to 37% on cannabis sales. Illinois is the State that has registered the lowest taxes of 7% on marijuana sales.
Marijuana spending shifted high by 25% through the COVID-19 lockdowns. In 2018, Colorado collected $267,000,00 in cannabis taxes while Washington brought in $439,000,000 in the same year, as per the Urban Institute.
With cannabis legalization in five states, 2019’s $13.2 billion returns from the marijuana industry will increase to $41.5 billion returns by 2025. With this, the cannabis industry will record a 214.4% increase within five years.
However, the marijuana industries will continue struggling to increase capital until the federal level decides to legalize cannabis.
Also, banks can’t loan cash to companies participating in illegal activities at the federal level.
The Future Of Marijuana After Georgia Senatorial Race
The United States economy stands far away from its pre-pandemic measures, and there is a probability for it to remain the same for some time.
Local government entities, states, and counties keep scrambling to get new incomes to avoid cutting vital public services.
By taxing products, like adult-use marijuana on the federal level, the government can either invest incomes from marijuana sales to other projects or cut the amount they tax other avenues.
The Pew Research Center report shows that over 67% of American residents support cannabis legalization, which has increased from the 41% figure recorded in 2010. Also, Gallup shows that over 60% of American residents support cannabis legalization.
This growing marijuana legalization support can have a significant impact on the stock market. Also, the ever-increasing cannabis legalization support means stock option diversification.
The above statistics show the cannabis industry is booming, meaning starting a career in this industry is the best step you can take. CTU is an excellent value and highly recommended university if you want to enter the cannabis industry. Get a CTU certification today to start your cannabis career!