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Cannabis and politics are at an intriguing crossroads as we creep ever closer to the next election year. Politicians must decide how to position themselves on the hot-button issue of cannabis legalization. Many potential legalization bills have been proposed in the House of Representatives but very few have ever made it out of committee. National legalization bills have a history of facing intense scrutiny in the houses of Congress. There are a number of reasons for this but the vast differences in political opinions of members of Congress makes compromise on any bill, let alone one about a hot button issue like cannabis legalization, very difficult.
However, on Wednesday, November 20th, a new bill that would decriminalize cannabis nationally, allow states to make their own laws on full-scale legalization, and create the potential for expunging criminal records related to cannabis arrests passed in the House Judiciary Committee.
Chances of the Bill Passing
Though it is tough to envision a cannabis bill actually seeing the light of day, there is hope for this most recent iteration. The bill already has 50 co-sponsors, bipartisan support from notable pro-cannabis legalization Republicans like Matt Gaetz of Florida, and passed the House Judiciary Committee with a vote of 24-10. It is always encouraging when Republicans and Democrats can agree on legislation, especially when it comes to a potential cannabis legalization bill. Recently, the House of Representatives passed the SAFE Banking Act with bipartisan support. The bill allows for cannabis businesses to bank safely and discreetly. Its passage shows the willingness of Congressional Republicans and Democrats to work together to pass a cannabis bill.
The House cannabis bill is undoubtedly an exciting moment for those in the legalization movement. As promising as the bill seems, it is unlikely that it will be passed without major changes. It may pass the Democrat-controlled House of Representatives, but will face an intense battle in the Republican-controlled Senate. As unlikely as the bill’s passage is, those investing in the cannabis industry seem to believe the bill has a chance to become a part of American law soon.
Impact On The Cannabis Industry
As news of the forwarding of the house cannabis bill was announced, cannabis company stocks soared. The three biggest cannabis stocks, Canopy Growth, Tilray Inc., and Aurora Cannabis all saw prices rise between 8% and 15% on Wednesday, according to Reuters. Investor excitement is palpable, but some experts warn about the long term future for the House cannabis bill. Alan Brochstein, managing partner at New Cannabis Ventures, cautioned that the bill is, “such an early step in a long process that there are no near-term implications for cannabis stocks.”
The merits of the House cannabis bill will likely debated for the next few months. Changes will be made and votes will be cast before anything is set in stone. Whether or not this iteration of a legalization bill becomes law is unknown, but the fact that some politicians continue to fight for cannabis legalization is tremendously promising.