Slow burn… Today is 4/20, the unofficial holiday of cannabis connoisseurs. It’s been a decade since recreational pot was first legalized in the US, in Washington and Colorado. Since then, 16 more states and DC have followed. While national legalization remains an open question, the industry has found ways to advance:
- Legal cannabis sales are expected to total $33B in 2022, a 32% jump from last year.
- Three quarters of Americans now live in states with some form of legalized weed.
- 520K workers are now employed in the US cannabis industry.
Put that in your pipe and vote on it… This month the House passed legislation to legalize cannabis nationwide. But the bill’s stuck in the Senate, where it’s unlikely to pass because of partisan gridlock — even though it has support from nearly 70% of voters. The absence of a federal law has been a buzzkill for cannabis companies as they try to expand nationally:
- Green stocks turn red: Shares of billion-dollar cannabis giants Tilray and Canopy Growth have fallen to five-year lows as legalization efforts have stalled. Many canna-businesses have chosen to sell in only one state to avoid complex interstate commerce laws.
- Nowhere to put the green: Banks like Chase and Citi and payment processors like Visa won’t handle cannabis $$ for liability reasons — even where it's legal. But small banks and credit unions are embracing the industry and could open the door to “cannabis banking.”
High demand doesn’t always assure fast growth… Sometimes it’s in the hands of politicians. President Biden hasn’t pushed for pot legalization, which makes it unlikely the Dem-controlled Senate approves the current bill. But analysts think lawmakers may greenlight canna-banking this year, which could help cannabis companies expand to multiple states even without full legalization.