- Joe Biden became the 46th president of the US.
- Democrats now control both the presidency and Congress — that’s a major catalyst for the cannabis industry, according to analysts.
- Business Insider put together this comprehensive tracker to explain the Biden Blue Wave, MORE Act, state ballot measures and timelines, and which companies are best positioned for the new markets.
- Subscribe to Insider Cannabis, our weekly cannabis industry newsletter, for more stories like this.
Joe Biden and Kamala Harris were sworn in as president and vice president, setting the stage for Democratic control of Congress and the presidency.
That scenario, dubbed a “Biden Blue Wave,” is expected to provide a major catalyst for the US cannabis industry, according to analysts.
Cowen analyst Vivien Azer has previously said that with a Democratic-controlled government, cannabis-related legislation — like the STATES Act and MORE Act — would have a better chance of passing, creating big opportunities for the US industry.
Democrats control the Senate because both of Georgia’s Democratic candidates won their seats earlier this month.
In December, the US House of Representatives, where Democrats are also in control, voted for the first time on a bill to decriminalize cannabis. The bill was expected to face opposition from a Republican-controlled Senate.
The bill, the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, would end criminal penalties for anyone who sells cannabis in states where that’s legal, decriminalize the use of cannabis throughout the US, and formally allow states to chart their own course in establishing commercial marijuana sales if it becomes law.
Cannabis is also gaining ground on the state level. Five states voted to legalize cannabis in some form in November’s elections.
New Jersey, Arizona, South Dakota, and Montana voted in favor of legalizing cannabis for all adults over the age of 21. South Dakota also passed a medical cannabis measure, as did deep-red Mississippi.
To the cannabis industry, New Jersey presents the biggest opportunity. Companies are racing to take advantage of the New Jersey market, which has millions of prospective consumers within the state, as well as easy access to New York City and Philadelphia.
Even with Democrats holding a slim Senate majority, the passage of cannabis legislation is far from certain.
In a note earlier this month, Cantor Fitzgerald analyst Pablo Zuanic said that “the investment debate now is more about the priority cannabis reform will take over perhaps other more pressing matters for the Biden Administration, and on what types of reforms will the VP-elect Harris tie-breaker vote be used (assuming no Republicans support MJ reform).”
Cowen’s Vivien Azer said that Democratic control of Congress, “opens the door for enactment of cannabis legalization” over the next two years.
Azer says that she sees the passage of the STATES Act, which ultimately gives individual states the power to regulate their own cannabis laws without federal intervention, as the bill “most likely” to pass. The MORE Act is also possible, Azer writes, though she added that the legislation may “be a step too far for moderate Democrats.”
“In either case, we expect Congress will give cannabis companies access to commercial banking and insurance,” Azer wrote. “We also see medical cannabis being protected. Capital markets access is largely dependent upon enactment of either the STATES Act or the MORE Act.”
Meanwhile, states are moving to implement legalization measures that voters approved in November.
To put together this ballot tracker, Business Insider tapped a variety of sources to explain the nuances of each state’s ballot measures and where polling stood prior to the votes. We’ve also included market-size projections to give a sense of how important each state could become for businesses and investors.
Here’s everything you need to know about the new wave of US cannabis legalization:
This article was published on October 9. It has been updated with election results, the results of the House vote on the MORE Act, Georgia’s Senate results, and the inauguration of President Joe Biden on January 20.
Leave a Reply
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
