January 14, 2021

USA Gears Towards Federal Cannabis Reform

2min read

On 6th January 2021, it was announced that the Democrats won both US Senate run-off elections in Georgia. This was a significant win for Democrats who now hold a half the Senate seats and have vice-president-elect Kamala Harris casting the tie-breaking vote. Cannabis stakeholders rejoiced to the election outcome as Democrats now hold control over both houses of Congress and the Whitehouse.

Alex Khourdaji – Analyst

February 5th, 2020

USA Gears Towards Federal Cannabis Reform

Therefore, it is expected that there is a clear path for major federal cannabis reform with many expecting the US to legalise cannabis in the next couple of years. The news from Georgia was also felt by the public markets cannabis stocks soared, with Tilray stocks increasing by 19.1% and Canopy Growth stocks reaching 17.7% at intraday highs.

The Georgia run-off election results come on the heels of the Democratic win for the White House and all cannabis ballot measures passing in Arizona, Mississippi, Montana, New Jersey and South Dakota. The overwhelming support for cannabis is not going unnoticed with lawmakers in New York and Connecticut proposing to legalise cannabis in their given states. The attitude towards cannabis is changing in the US, and many believe that we are at the tipping point of drastic federal change in the nation.

Alongside state-wide legalisation, on 4th December 2020 the House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement Act (MORE ACT) of which Vice-President Kamala Harris is a lead sponsor. The MORE ACT is a bill that seeks to decriminalise cannabis federally and removes cannabis from the Controlled Substances Act. The bill is one of the most comprehensive cannabis decriminalisation bills to-date. It pursues to end the current war on cannabis, aid economic development and promote criminal justice reform. It is no surprise that the legislation passed through the democratic led House of Representatives as September 2020 poll by The Justice Collaborative Institute & Data For Progress suggested that the MORE Act had support from Democrat (70%) and Republican (53%) voters.

The MORE Act will significantly impact the cannabis industry as the de-scheduling of cannabis would ignite massive growth on a national level. The bill would promote the legal interstate trade of cannabis, permitting cannabis companies to expand into other regions in the US, which would fuel competition and growth in the industry. The legislation not only focuses on the long-awaited legalisation of cannabis but shines a light on the much-needed programmes needed to integrate communities, who have been affected by cannabis criminalisation, into the legal industry. The legislation implements a 5% excise tax on cannabis products to fund expungement efforts, in addition to the establishment of grant programmes to communities that have been affected by the war on drugs. Thus, it is essential to note that if this bill or a more advanced version of it passes the Senate, it will aid the US cannabis market and benefit those affected by its criminalisation.

For more information regarding the US and Canadian cannabis market please download Prohibition Partners North American Cannabis Report Here.

Prohibition Partners North American Report takes a deep dive on the current social, economic, regulatory and health trends including:

  • US 2020 Elections
  • The Rise of SPAC’s
  • The 2019/2020 Vaping Crises
  • Federal Cannabis Reform
  • Social Equity Programmes
  • Canada’s Cannabis 2.0 Roll-Out
  • COVID-19

The North American report also includes sales forecasts of medical and adult-use cannabis in the US and Canada.

USA Gears Towards Federal Cannabis Reform

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