CANNABIS stocks are expected to maintain their post-Election surge this week with Joe Biden now confirmed as the 46th President of the United States of America.
As the blue votes inched higher late last week pot stocks were a stand-out winner with companies such as Aurora Cannabis up by 66% and many others up by percentages into the teens.
The momentum had been building from Wednesday as results from the state ballots were tallied, meaning some 111m Americans – over one-third of the population – now live in states where cannabis has been approved for legal purchase by adults.
President-Elect Biden and Vice President-Elect Kamala Harris look set to decriminalise cannabis and push through measures to further embrace the industry.
Trans-Atlantic Green Wave
The waves emanating from America’s increasingly liberal attitude to cannabis will also be felt on this side of the Atlantic, says one of Europe’s leading cannabis figures.
Stephen Murphy, Co-Founder and Managing Director of London-based Prohibition Partners, told BusinessCann public opinion on cannabis is changing saying it’s ‘no longer a political hot potato’.
“Without a doubt, anything the US does will have an impact on the United Nations and Europe.
“It will filter down, and this electoral change may even provide the opportunity for US companies to start working and operating internationally.
“This hasn’t happened to date and when it does it will bring capital and expertise to the international space. They will want assets and international partners and that will super-charge the cannabis industry around the world.”
Republican Senate Quandry
Following the Elections there are now 15 states, plus Washington DC, that allow adult-use cannabis and 37 states, plus Washington DC, that allow medical cannabis.
The Presidential duo’s commitment to decriminalisation and de-scheduling cannabis will be ground-breaking with some 600,000 people arrested each year on possession charges.
Two bills are currently passing through the legislature which if adopted will have a significant impact on cannabis.
The Secure and Fair Enforcement (SAFE) Banking Act is designed to allow the US banking system to embrace cannabis without the threat of legal action.
As well as preventing federal banking regulators from sanctioning banks working with state-compliant cannabis businesses it would also protect ancillary businesses from being charged with money laundering.
Secondly, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act would de-schedule cannabis, decriminalising it at the federal level.
However, with the Senate likely to remain in the hands of the Republicans progress on these may stall.
Mr Murphy added: “The clean sweep; a Democratic President, House of Representatives and Senate is looking unlikely, but, nevertheless, cannabis is now a bi-partisan issue, and that is really exciting – the average winning margin in the state ballots on cannabis was around two-thirds – which is very healthy.
“Whilst we won’t see legalisation we may well see the launch of a federal review on legalisation. The tide is changing. One in three adults now have access to adult use and one in two to medical – you cannot put that back in the box.”
@Senior republicans, democrats and figures from some of the leading US multi-state cannabis operators will be speaking at a much-anticipated Prohibition Partners Live on-line conference next week.
For further information and discounted tickets click on this link.