One simple word could change the entire world of cannabis investing…
Allow me to explain. You see, the main hurdle keeping cannabis from becoming one of the United States’ biggest cash crops is the federal government. Currently, the government considers cannabis a Schedule 1 drug, which means even if states legalize it, the government can still swoop in and shut businesses down. They have done so in the past.
That distinction puts marijuana on the same level as heroin, LSD, and cocaine. I’m sure anyone who has experience — firsthand, secondhand, or otherwise — with these drugs could tell you the wild differences between them.
The classification makes cannabis even more dangerous than Schedule 2 drugs like fentanyl, oxycodone, and morphine.
It’s completely absurd, but it has had a chilling effect on the entire industry.
Thankfully, that may be about to change…
Later this month, there will be a debate in the House surrounding the Commerce, Justice, Science and Related Agencies appropriations amendment. While that hardly seems like earth-shattering news, there is a very important word that is being discussed: medical.
Currently, the Feds cannot use taxpayer money to shake down medical marijuana businesses in states where it is legal.
This bipartisan amendment — known as the Blumenauer-McClintock-Norton amendment — would remove the “medical” part and keep the Department of Justice from using taxpayer money to interfere in the 11 states that have already legalized the recreational use of cannabis.
If the amendment is approved, it will be the biggest legislation that Congress has passed to end federal cannabis criminalization. Once that happens, we’ll see more and more states begin the legalization process — opening up to millions of new customers in states like Arizona, Pennsylvania, New Jersey, and eventually New York.
It would be exactly what the U.S. cannabis market needs to assert itself as the powerhouse it is.
Even before any new legislation, American marijuana businesses are projected to add $130 billion annually to the U.S. economy by 2024. With around $13 billion in sales last year, recreational and medical marijuana in the United States is already bigger than the NBA.
Once this amendment passes, it will be off to the races. And I believe it will pass for several reasons…
Now, I’ve discussed before how the coronavirus has exposed cannabis as a recession-proof industry. Customers loaded up on cannabis right alongside toilet paper, hand sanitizer, and canned goods.
Recreational sales are up triple digits in some areas of the country.
But there is another byproduct of the recent crisis that many people aren’t really talking about. Once the virus has subsided, states will be left with millions of unemployed Americans, thousands of shuttered businesses, and massive amounts of debt.
Here’s what cannabis could bring to each and every state:
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Billions of dollars in tax revenue (for years to come)
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1 million+ high-paying, disaster-proof jobs
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An entirely new production chain that helps everyone — from depressed rural areas to urban city centers
What better time to slide in cannabis legalization to help ease the massive burden? With the stroke of a pen, states can legalize cannabis and create a brand-new stream of tax revenue — instantly.
The Blumenauer-McClintock-Norton amendment may be the spark that starts that fire.
I’m betting on bipartisan support to carry this through, because, what politician in their right mind would shoot down a popular bill that will help bring back American jobs and dump millions of much-needed tax dollars into their states?
So, while Canada led the first cannabis boom, the U.S. will definitely be leading the second one.
You should start positioning yourself before the vote counts begin.
