Cannabis legalization received a boost as five state-level marijuana initiatives garnered enough support to pass in this year’s ballot, according to Yahoo!finance. The expected legalization will grow the U.S. Cannabis sector by an additional $9 billion in the next five years. However, the hope for further legalization hangs in balance as Cannabis-friendly Democratic Senate control is fading.
- The current cannabis legalization in 5 states could pile pressures on other state legislatures to follow suit.
- If Republicans control the Senate, the odds of legalizing cannabis at the federal level will fall, a blow to the passage of the Kamala Harris-backed Marijuana Opportunity Reinvestment and Expungement (MORE) Act.
- Currently, since cannabis remains federally illegal as a Schedule-1 drug, entities are subjected to effective tax rates of almost higher than 50%, and revamping the federal law is needed to reduce the tax cost.
Cannabis stocks are gaining. MJ is up on premarket 5.85%, CGC: NYSE is up on premarket 6.00%, TLRY: NASDAQ is up on premarket 16.17%, APHA is up 9.17%.