Cannabis stocks have struggled in the market in recent years as the industry push to gain ground on the regulatory front hasn't progressed as quickly as investors had hoped.
U.S. President Joe Biden hasn't followed through on his campaign promise to decriminalize cannabis on a national level, but Biden could return to the cannabis issue once again in the run-up to the 2024 elections.
Limited Progress: On the campaign trail in 2021, Biden promised to decriminalize cannabis on a federal level, release Americans held in federal prison over nonviolent marijuana offenses and reschedule marijuana under the Controlled Substance Act. Up to this point, Biden has not fulfilled any of those three cannabis reform pledges.
While cannabis investors and enthusiasts may be disappointed in Biden's progress on the cannabis reform front, there have been some achievements during the Biden administration. Washington has not interfered with additional states legalizing recreational and medical cannabis. In addition, Biden announced a mass pardon for all Americans convicted of simple federal marijuana possession.
Unfortunately, that effort appears to be mostly symbolic given there is currently not a single person in federal prison for simple possession of marijuana.
Related Link: Is Big Pharma Coming For Your Cannabis Business?
Federal cannabis legalization appears to be one of the rare political issues that has bipartisan support. A November 2022 poll by Pew Research found 88% of Americans believe marijuana should be legalized for medical use on a federal level, while 59% of Americans say it should be legal for both recreational and medical use.
Along political lines, 85% of Republicans and Republican-leaning independents favor federal medical marijuana legalization, while 45% favor recreational and medical legalization. Among Democrats, 95% favor medical legalization and 73% favor both recreational and medical legalization.
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Young Voters: Biden or his Republican challenger could certainly take on cannabis reform as a way to attract younger voters and potentially boost the turnout of Americans under 30.
Pew Research found 93% of Americans ages 18-29 say marijuana should be legalized for medical purposes and 72% say it should be legalized for recreation.
Even among senior voters over the age of 65, 86% favor medical marijuana legalization and 46% favor recreational legalization at the federal level.
Unfortunately, as powerful as the cannabis reform movement may be, the pharmaceutical lobby is one of the biggest spenders in Washington. Federal cannabis legalization could be a major threat to the massive prescription pain medication market, which is expected to exceed $100 billion in size in 2023.
Learn More: Cannabis industry insiders and experts will be discussing cannabis reform and investing in the cannabis industry at the Benzinga Cannabis Capital Conference at the Fontainebleau Miami Beach Hotel, April 11-12.
Learn more about this and other upcoming Benzinga Cannabis events at this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Cannabis rescheduling seems to be right around the corner
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