If you ever watch what goes on in Congress, you’ll know that their hearings are usually a lot of hot air.
But yesterday, something happened that I haven’t seen in a while: Republicans and Democrats were in agreement!
And here’s what it was about: Our marijuana laws are a total mess.
“I believe more permanent reforms are needed to allow individual states to control, regulate, and tax marijuana as each one sees fit. The present conflict between state and federal law is no longer sustainable, and it must be resolved.”
That’s pretty much what I’ve been arguing all along — but those are not my words. That’s a quote from the top Republican in yesterday’s subcommittee hearing about marijuana, Rep. Tom McClintock.
And this is from a man who is no big fan of cannabis. He went on to say: “Personally, I think cannabis use in most cases is ill-advised. But many things are ill-advised that should not be illegal, but rather be left to the informed judgment of free men and women.”
Even the Democrats didn’t find much to argue with there.
Most of the discussion was about what to do in terms of taxes, as well as “descheduling” marijuana. All of the speakers pushed for it to be moved down from Schedule 1 — which is normally reserved for the most dangerous drugs — to more like Schedule 3. That would be on par with codeine cough syrup.
Now, there’s still going to be some bickering in Congress about the particulars. Marijuana legalization is no different than anything else, in that way. But that’s really the last remaining barrier.
A Fork in the Road
There seems to be agreement that the most logical next step is to get the federal government out of the way… especially on the business side. By removing the “Schedule 1” stigma, Congress can also remove a lot of the headaches that companies are dealing with.
There’s actually a bill that’s ready to go: the SAFE Banking Act. It’s poised for a final vote, and if passed, the bill will allow banks to work with the marijuana industry without fear of breaking any laws. In other words, cannabis companies will have pretty much the same access to traditional banking services and loans as everyone else.
And another bill (that came up a lot yesterday) is the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. The 10th Amendment is the one that says: powers not delegated to the federal government by the Constitution are reserved for the states. The STATES Act will allow individual states to make their own laws on cannabis. Any U.S. bank lawfully working with marijuana businesses will be protected under the proposed law.
After yesterday, we’re closer than ever to passing either (or both) of these bills. It’ll be a major event for cannabis companies — and, of course, for their stocks.
Just look at what happened to marijuana stocks when the SAFE Banking Act made it through committee in March:
More is Coming …
As you know, I’ve been carefully monitoring the marijuana industry since it began … back when Colorado became the first state to legalize in 2014. Today, 33 states allow some form of marijuana. Eleven states and Washington, D.C. even allow recreational use. And Colorado has made $1 billion in cannabis-derived state revenue (and counting). So it’s only a matter of time before marijuana is legalized in more states — and, once the federal government gets out of the way, the entire country.
A lot of investors have already made a lot of money, but I keep working to make sure people realize: There is much more to come. And there is still plenty of time to make a lot of money.
The United States is waiting in the wings to become the biggest marijuana market in the world. Any time governments open up a huge new market like legal marijuana, investors can win very big.
We’re already seeing that. Even “baby steps” forward like the ones I just reviewed have a material impact on profits for marijuana investors. And I think yesterday’s hearing in Congress was more than a baby step.
I hate the thought of you or anyone else missing out, and you don’t have to! The key is to be positioned BEFORE these events unfold. In other words, now.