Nobody saw it coming, but this alternative federal legalization bill could have big implications for investors…
Charles Delvalle here – owner of Hashstoria and a member of the National Institute for Cannabis Investors (NICI) Advisory Board.
I’m reaching out to make sure you’re aware of a major development sweeping the industry that has been affecting your pot stocks over the past few days.
I’m talking about the brand-new cannabis legalization bill circulating in the U.S. House of Representatives, soon to be introduced by a Republican.
That’s right, Republican representative, Rep. Nancy Mace (R-SC) is currently taking feedback on a bill to legalize cannabis at the federal level that she plans to officially file later this month.
This is huge. Because until now, only Democrats were seriously pushing for legalization, which can’t succeed without at least some Republican support. This Republican-backed effort gives us a renewed hope for bipartisan cooperation on cannabis legalization, which will be the only way to drive this train forward.
Investors rushed to the market when the news of this bill leaked. Federal cannabis legalization will be a stock catalyst of historic proportion, and the investors who buy in now will be the ones who will make the most money.
So, what’s in this new Republican-backed reform bill? And why is it different than the other federal cannabis bills, like the Secure and Fair Enforcement (SAFE) Banking Act that still haven’t passed?
Here’s what makes this Republican-backed cannabis bill different from its predecessors, and my thoughts on whether it’s likely to pass…
This bill is being called a compromise between the two parties, who generally have different approaches to cannabis legalization.
While Republicans tend to favor open banking provisions and simply decriminalization, putting the question of legalization solely in the state’s hands, Democrats favor a comprehensive legalization bill that includes social equity causes, federal regulation and taxes.
Rep. Mace’s bill has a little bit of everything.
It includes a cannabis sales tax of 3.75% to fund social equity causes and business aid, but leaves the majority of regulation in the hands of the state.
Is it enough of a compromise to pass?
There’s no doubt that congressional Democrats will want to push their own legalization package. But this new bill, called the States Reform Act, signals a willingness to negotiate by the Republicans.
If you had told me there was a strong chance for a bipartisan legislation bill this time a month ago, I might have laughed at you. But here we are, staring directly at that possibility – and the odds, and the national majority, are in our favor.
I’m thinking we could see bipartisan compromise even before the midterm elections in November.
Once this bill is introduced, I would expect your pot stocks to rebound even further as the path towards federal decriminalization becomes clearer.
And, as always, we’ll keep you updated every step of the way.
November 12 2021