Big changes could be coming sooner than you think…
A fair warning before you dive into today’s read…
To understand what’s happening with cannabis legalization in the United States, I have to take a dive into politics.
I’m passionate about the subject because I have to deal directly with the federal mistreatment my cannabis business endures.
And that business aspect is a critical piece of the cannabis legalization puzzle.
Change Is Afoot
Back in November, the U.S. House Judiciary Committee passed a bill – the Marijuana Opportunity Reinvestment and Expungement (MORE) Act – that would, among other things, remove cannabis from the Controlled Substances Act (CSA).
It didn’t just barely pass, either.
It was 24-10 in favor.
Before the MORE Act, the House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act on a bipartisan basis. SAFE would have allowed a cannabis business to work with any bank or insurer it wanted.
My friends were calling me as they celebrated. They thought we would finally get treated like a standard retail business.
My excitement, though, was non-existent.
I knew the Senate would never consider the bill because Senate Majority Leader Mitch McConnell (R-KY) – the guy who gets to choose what bills the Senate will take up – doesn’t like cannabis.
This is the same person who called cannabis the “illicit cousin” of hemp, among other things. It is simply not in his political interest to back cannabis.
So, he doesn’t – to the detriment of all the states and businesses that operate in this complicated regulatory and tax minefield.
To understand the full overview of legalization, that begs the question: what if the Democrats controlled the Senate? Senate Minority Leader Chuck Schumer (D-NY) has no issues with cannabis legalization. The SAFE act would have passed. And I believe President Donald Trump – who is very pro-business – would have signed it.
But let’s not spend too much time focusing on “ifs,” because we want to focus on what is ahead.
Looking to November, should the Democrats take over the Senate and keep the House – even if Trump still holds the White House – I predict a huge federal push to normalize the cannabis industry.
And that, dear reader, is exciting.
The End of Anti-Cannabis Sentiment
People are blown away every day when I tell them just how many hoops I have to jump through to own a cannabis business.
At Hashstoria, I can’t write off most normal business expenses. I can’t write off build-out expenses. I can’t write off a huge chunk of labor. I can’t even write off utilities like security or my point of sales system.
Things other businesses take for granted, like a merchant account to process credit cards, are things I have to live without.
And there are only two banks in my state that openly deal with me. The bank fees? More than $1,000 a month for each cannabis business I own (and I can’t write that fee off, either).
Sure, there are accounting games you can play to reduce your tax rate. But the IRS is closing loopholes all the time. At this point, you need a CPA just to structure how your cannabis business will work.
Now, let me take a step back.
If this all sounds pessimistic, it’s not. It is pure frustration.
I operate a business that generates tax revenues, creates jobs, even helps reduce dependency on opioids, and the Feds treat us like garbage.
I can’t wait until that ends. And as an investor, neither should you.
A Bright Future for Cannabis Investors
When the Feds legalize cannabis, money is going to pour into the sector at a pace we haven’t seen yet.
Stock prices for companies like Trulieve Cannabis Corp. (OTC: TCNNF) and Planet 13 Holdings Inc. (OTC: PLNHF) will soar, and we’ll see a tremendous amount of U.S. cannabis companies hit the public market.
(Which makes now the perfect time to get into cannabis while prices are still low – so check out the 2020 Pot Profits Roadmap for everything you need to know so you could start making money in this industry.)
All that said, legalization in America won’t be a smooth process. I expect the Feds will dramatically transform the industry.
Some businesses are going to crumble because they don’t see what’s coming. But those that plan properly will dominate the industry and provide massive profit opportunities.
Over the next few weeks, I’ll share exactly what to watch out for.
Advisory Board Member, National Institute for Cannabis Investors
Responsible for well over half of the state’s cannabis sales, Trulieve is Florida‘s favorite cannabis brand by a mile. It’s no accident how it got here. It was the first to market, the first to sell smokable flower, the first to deliver at scale. And that’s just scratching the surface. Check out five ways Trulieve is securing its status as the top cannabis company in the country.
6 responses to “2021: The Year Cannabis Becomes Legal in America”
July 21 2020