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  • James Veal

A Joe Biden Presidency Could Be Key for the Growth of Marijuana Stocks

A hot topic in the past few years and whispers doing the U.S. Presidential election was the likelihood of federal regulation surrounding marijuana. Right now, cannabis remains illegal at the federal level, but over 30 states have various forms of state-level approval for either medical or recreational cannabis.

Will President-Elect Joe Biden Determine the Future of the Cannabis Industry

We all know that the cannabis industry is dependent on legislation. In the past, we have witnessed new laws be the backbone of growth for marijuana stocks. The question now is, just how could pot stocks benefit from a Joe Biden presidency? Although it is too soon to know what will happen, it’s worth exploring his potential effects on marijuana stocks and the cannabis industry.

Prior to the election, many polls have shown that 2021 could be the year that cannabis is legalized if Joe Biden won the Presidential race. With Trump, it was clear that cannabis legislation was not a priority. But, in order to have the upper hand, Biden has shown his complete support for marijuana reform. With him winning the election, marijuana stocks could see a potential boost coming into the next year. Again, it’s worth noting that this is all speculation right now.

Changing Tides for the Cannabis Industry

Major U.S. pot stocks are patiently awaiting for legislation to change. 2021 is a new year where change is very much on the horizon. Because of this, it's anyone guess as to what will happen. The coronavirus has without a doubt resulted in a massive economic turndown that has affected all industries. Although the cannabis industry and pot stocks have largely avoided massive fallout, it remains that the economy needs a major boost. With that in mind, Biden has recognized that the cannabis industry presents a lot of potential tax revenue to the U.S.

Minorities and the Cannabis Industry

During a recent panel, analysts argued about the role that Biden could play in the cannabis industry. There needs to be a major change in the government in order to see marijuana legalized on a broad basis. One analyst stated that a new legislative package would need to “include provisions ensuring that minorities get to participate in the legal cannabis business as their communities were hit hardest by the war on drugs. Biden will be under pressure from the left-wing of the Democratic Party to move cannabis forward because of the social justice issues.” Minority dispensary ownership and partnerships are still very anemic in this robust industry. State leaders has to ensure that here is minority inclusion.

With the Republicans losing the White House, it looks like Joe Biden and the Democrats will need to make a big statement on behalf of marijuana. How and when he does that remains unknown. But, federal cannabis legalization would be the largest shift for U.S. marijuana stocks in the history of the cannabis industry. For that reason among others, our new President has some important decisions to make and it could be historical as we all wait.

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