Sessions Making Legal Pot Industry Paranoid
If you listen to the Whiskey Congress Podcast enough, you will be more likely than not to hear that neither host of the show is a fan of US Attorney General Jefferson Beauregard Sessions. One of many reasons for this sentiment, is the Attorney General’s stance on legal marijuana and the damage that he can do to the legal pot industry from the position he holds. During his confirmation hearings, Sessions was questioned about his stance on states where marijuana has been legalized for medical and/or recreational use. He stated that enforcing federal laws in states with legalized pot was not a priority for the Department of Justice. Now fears are arising that the DOJ may be maneuvering to remove restrictions preventing the federal interference in state legal matters related to legal pot. The Trump Administration has meddled with many Obama Administration policies, often it seems simply to tarnish the 44th President’s Legacy. This might be the next phase of that trend and legal pot advocates and investors are taking notice.
Pardon the pun, but the marijuana industry has been growing like a weed for years — and it has rapidly changing perceptions about the drug among the public to thank for it.
According to a CBS News poll conducted in July 1979, just 27% of those surveyed believed marijuana should be legal. Comparatively, 69% thought it shouldn’t be legal. Fast-forward to April 2017, and CBS News’ latest survey finds that an all-time record of 61% believe pot should be legal nationally, while just 33% now oppose the idea. This growing acceptance and favorability of marijuana has some pro-legalization enthusiasts and investors thinking that lawmakers on Capitol Hill may be coerced to change the drug’s scheduling sooner rather than later.
The result of this shift in opinion on pot has dramatically boosted sales of the drug in the United States. A Marijuana Business Daily report released this year estimates that legal-cannabis sales could grow by around 30% in 2018, and by an aggregate of 300% between 2016 and 2021 to approximately $17 billion. It’s this shifting opinion and rapid growth rate that have marijuana stock investors so excited about the industry’s prospects.
Marijuana’s huge speed bump in the road
But there’s one catch, and it’s a pretty big one: Marijuana is still illegal at the federal level. As a Schedule I substance, it has no recognized medical benefits and is considered to be on par with heroin and LSD.
During the Obama administration, the Cole memo, named for President Obama’s deputy attorney general, James Cole, acted as a guide for how the federal government and legalizing states would coexist. According to the memo, states would be allowed to legalize and expand cannabis programs as long as they held to strict regulations, including ensuring that no minors got their hands on cannabis, and that states set strict regulations for driving under the influence. It also meant states had to take extra precautions to ensure that marijuana wasn’t trafficked interstate.
During the Obama presidency, federal regulators were generally hands-off when it came to the practices of individual states. Under the Trump administration, that may soon change.
