The green wave is on its way. A silver lining to this pandemic has been the increased use of cannabis, with more industries partaking in destigmatizing the plant and more people accepting the idea of it.
35 out of 50 states in the U.S (including D.C) have legalized cannabis. However, there is still some way to go. The political policies are evolving as the awareness is growing for drugs. Here are some changes we expect to see in the coming years.
Laws By State and Market Growth
Marijuana policy reforms can happen on a federal level as now the House, the Senate, and the presidency are led by Democrats. There are several bills under review in the new Congress pertaining to marijuana. In the year 2019, according to Viridian Capital Advisors, cannabis companies raised around $116.8 billion. This may see a rise, but many industries are concerned about working with illegal businesses involved with money laundering. Bills like Safe Banking Acts will protect industries and provide more legal clarity, and bridge the gaps.
There is a big difference between the legal market and otherwise. In North America, the value of legal marijuana in 2019 was $30.1 billion and is expected to grow 15.5% from 2020 to 2027. The future of marijuana is bright, and companies wanting to invest in marijuana stocks should do so now.
Softening Stance of FDA Over CBD
The U.S. Food and Drug Administration (FDA) current rule states that all drugs containing CBD must have the agency’s approval. It is also a crime to advertise dietary supplements containing CBD and food products. While the journey is still long for CBD to be unscheduled, some ease has been shown as hemp production is legalized, another CBD source.
Getting Rid Of the Stigma
The easiest yet the hardest out of the lot is changing attitudes towards cannabis. Over the years, as more and more are being exposed to the drug’s health benefits and medical benefits, their attitude is changing. It was once considered an illicit drug and is still controlled by the Federal government. However, over the past two decades, the change noticed in destigmatizing the drug is massive.
From 2000 until now, around 33.5% of Americans’ are now vouching for the drug’s legalization. More and more adults are making use of the drug for recreational and medical purposes across the country. By 2030, the cannabis industry is expected to generate $85 billion in sales, as per the reports of analyst Vivien Azer at Cowen.
Lowered Crime Rates
Crime rates might decrease once cannabis is made legal nationwide. The legal authorities are spending too much capital and time on going after people who possess the drug. This will ease things for the authorities in this aspect and allow them to pay more attention to serious offenses.
People who have been prosecuted and fined before will be let go to continue a normal life with no charges. President Joe Biden announced that marijuana should be decriminalized, and all the records filed against the convicted should be expunged. Similar is the statement of Vice President Kamala Harris, who also encourages the legalization and decriminalization act. Soon a greater change is expected in this area.
Tax Imposition
Tax imposition is a huge concern for industries dealing with cannabis production, marketing, and dispensary services. Therefore, there are many illegal dispensaries in the market selling marijuana due to the high tax rates. On the contrary, this gives a good push for the legalization of the drug by the Federal Law as hefty tax impositions mean the government gets a good share of the price. The growing market discussed earlier is a huge encouragement for the legal authorities.
As of now, the heavy tax impositions may seem to be a concern, but in the long run, this will serve as beneficial for the future of legal marijuana in the U.S.
Increase In Payment Options
Illegal matters mean sneaking in revenue for the sales made. This has been a problem for both marijuana consumers and sellers. For the very same reason, banks refuse to finance cannabis entrepreneurs. Consumers do not make use of their cards and opt for direct cash when buying cannabis to avoid getting penalized for illegal activity if their state does not fully allow them to.
There are other payment options available in the market currently, such as cryptocurrency. This type of transaction has quite a few benefits, and the easy dealing makes it a good option for the future.
Moreover, an increase in legal marijuana in the U.S will increase growth opportunities, creating jobs and encouraging more start-ups. Banks will then be able to provide loans for such industries. This will also rid people of being caught if they use credit card transactions for such products. The future will see a cryptocurrency boom as they provide for more private operations than credit cards.
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