Following Joe Biden’s win at the 2020 US general election and the Democrat victories gaining them a majority in the US Senate this week, experts are prepared to see a more liberal, free cannabis market in the country. As a result, Nasdaq reports, cannabis stocks may very well be the winners of the year.
According to the paper, following the Democrats’ historic win in the US senate race in Georgia, cannabis stocks rocketed. Experts are confident that the Democrat’s majority in the Senate will bring the long-awaited green wave in the US.
Some of the largest cannabis companies, such as Canopy Growth Corp and Cronos Group, have seen their share values jump massively following the success of Jon Ossoff and Raphael Warnock in Georgia’s run-off elections.
John Ramsay, CEO of Infinite CBD, told Nasdaq: “Everything suggests that a Biden administration will federally legalise cannabis.
“If this happens, it is going to create more multistate operators, broaden the cannabis industry, create more jobs, generate more taxes, offer more products, produce more incomes in lower-income sectors, and undoubtedly cause a spike in the value of cannabis stocks.”
Also, with the additional states that have legalised either adult-use or medicinal cannabis during the 2020 general election, the green wave seems certain. The numbers really are telling: as of now, recreational cannabis and medicinal cannabis are legal in 15 and 34 states, respectively.
However, in reality, those looking for an imminent federal reform might be in for a surprise. Joe Biden has long been known for his objection regarding cannabis, and while Vice-President-elect Kamala Harris promised to decriminalise adult-use should they get into the White House, not everyone is expecting too much of an ease in federal cannabis laws.
Anthony Coniglio, CEO of NewLake Capital, said: “While this is an exciting time for the industry, I believe the reality of legislative priorities, narrow majorities in the House and Senate, as well as a lack of scientific research on cannabis will cause federal legalisation to take longer than the industry would like and some prognosticators are predicting.”
Also, Dan Ahrens from Advisorshares says “there is a great misunderstanding among investors” regarding cannabis reforms. He added, though, that some sort of change was indeed going to be inevitable during Joe Biden’s presidency, including “changes to regulations around cannabis banking, DEA rescheduling and decriminalisation.”
While the world is still fighting with the coronavirus pandemic, and Joe Biden will unlikely go and try to legalise cannabis on the federal level in the near future, businesses, users and patients on the global market may still be able to expect some good news in 2021.