“2020 election has yielded a green wave for U.S. marijuana firms.”—Barrons.com
Measures to approve recreational cannabis are projected to pass in New Jersey, Arizona, Montana, and South Dakota, while Mississippi added medicinal cannabis. New York and Pennsylvania are likely to follow in coming elections.
This election is the first election where voters in traditionally “red” states passed cannabis legislation in Arizona, South Dakota, and Mississipi.
These measures had bipartisan support, which will help make federal initiatives like banking reform and decriminalization more likely, even as Republicans retain control of the senate. In particular, the SAFE Banking Act has already passed the House. As the US faces a challenging economy as it battles the pandemic, legalized cannabis will likely be seen as a good way to bring in additional tax revenue.
Additionally, anticipation of a Biden win boosted cannabis stocks today after they dropped in response to Republicans retaining senate control. Aurora soared 40%, due in part to Biden’s stated interest in the decriminalization of cannabis. The combination of decriminalization and safe banking would allow more investment to flow into cannabis, and help to stabilize the rollercoaster ride of this emerging industry.
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