You might not have noticed what’s going on with cannabis laws in Congress, what with all the doom and gloom in the financial press these days about the cannabis industry.

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True, there has been blood in the streets lately as stocks have fallen and many investors have bailed on the fledgling sector, perhaps waiting for a better time to get in.

Today I’m going to tell you why that’s a costly mistake. I’m incredibly confident that quality cannabis stocks will be much, much higher in the coming months and years. That’s why smart investors should look at the deep discount in cannabis stock prices as an opportunity others will look back on with regret.

Yesterday, the biggest immediate catalyst of them all — full legalization within the United States — was being debated on Capitol Hill. Today, the House Judiciary Committee is scheduled to vote on the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. Introduced by House Judiciary Committee Chairman Rep. Jerrold Nadler of New York, the bi-partisan MORE Act would serve as a comprehensive, nationwide cannabis legalization law.As disciplined investors, we have to remember that the cannabis industry is a long-term play on a once-in-a-lifetime shift in the legal landscape. One that’s kept cannabis illegal at the federal level for over 80 years.

The bill sets up a 5% federal tax on cannabis sales. The revenue would be used to fund job training, legal aid for people who’ve been impacted by prohibition, and small business loans for those who are socially or economically disadvantaged. The measure also seeks to lower some of the barriers to licensing and employment in the industry.

Members of the Judiciary Committee on both sides of the aisle will be able to add amendments to the bill, though analysts expect it will move out of committee and see a vote on the floor of the House.

Yes, a vote in the U.S House of Representatives to legalize cannabis nationally.

What happens next is uncertain, but the signs are getting clearer and clearer …

A Favorable Shift

Even as stocks are under pressure, cannabis continues to proceed down the path toward full legalization. It is closer now than ever, even though nobody is talking about it.

• In late September, the House of Representatives approved the first standalone cannabis reform bill in its history. Lawmakers voted 321-103 in favor of the Secure and Fair Enforcement (SAFE) Banking Act, which would allow banks to have cannabis companies as customers.Currently, banks may face money laundering statutes and other issues if they serve such customers, which has led to a precarious banking situation for cannabis companies. This bill could be a game-changer for the industry, even before full legalization. The bill is now in the Senate’s Committee on Banking, Housing, and Urban Affairs. The Senate has 33 cosponsors of the bill thus far.
• Earlier in the summer, the House approved an amendment to block the Department of Justice from interfering in state-legal cannabis programs in a 267-165 vote. (A similar measure failed when it was up for a vote in the House back in 2015.) On October 31, the Senate approved a so-called “minibus” version of the bill with narrower protections than the House version. The final version has yet to be decided on.
• Last week, a top official with the Centers for Disease Control and Prevention (CDC) said that the federal prohibition of cannabis is delaying health officials’ response to the increase in vaping-related injuries and deaths. That’s due in part to “challenges” getting specimens shipped across the country to be tested. It’s significant when one of the most respected health organizations in the world says the cannabis’ illegality poses problems.
• Released last week, the latest poll from Pew Research Center shows support for legalization has never been higher. Some 67% of Americans now back legalization, up from 62% just last year. Opposition, meanwhile, has fallen to 32% from 34%. When asked whether poll respondents supported medical or recreational legalization, nearly 60% said they wanted both.

Here’s the thing: Voters want legalization. To date, 47 states, three territories, and Washington D.C. have legalized cannabis in some form or fashion. Many citizens voted directly in ballot measures to approve cannabis legalization in their home states.

There’s no doubt about it. We’re moving from a world of cannabis denial and prohibition to one of acceptance and legalization. As is typical, the people are well ahead of the politicians in terms of calling for reform and wanting new laws to address the reality on the ground.

By year’s end, we should see cannabis sales in the U.S. reach $13.6 billion, a 32% increase from 2018. By 2025, New Frontier Data forecasts sales will climb to $29.7 billion. Legalization is bringing a hoard of cash out from the shadows of the illicit market to the coffers of publicly traded firms.

Now, if you consider the amount of cannabis sales in the United States that includes the illicit market, that figure would reach over $57 billion by 2025, a 105% increase over legal sales. That represents a boatload of unregulated product that’s going untested for pesticides, fertilizers, and fungi, and a Ft. Knox-vault size of cash that’s getting diverted from legitimate cannabis companies, entrepreneurs, and taxpayers into the hands of black market operators.

Lawmakers have never been closer to changing the situation once and for all. And when they do, select companies will experience skyrocketing sales and profits.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.