Marijuana Laws Intrigue Intensifies
One thing that the administration of President Donald Trump can never be accused of is being boring. But beneath all the late-night tweet storms, investigations, and profanity-laced interviews delivered by senior staff, laws are still being passed and the wheels of government are still turning. A huge development in marijuana laws recently took place, and not a whole of people noticed, which is fair enough considering all the juicy distractions. But for those of us who are interested in the marijuana stock market, it’s important to keep track of these things.
The law in question was an amendment to the 2018 Commerce, Justice and Science appropriations bill that prohibits the Justice Department from using funds to prevent states from “implementing their own state laws that authorize the use, distribution, possession or cultivation of medical marijuana.” (Source: “Senate panel advances measure to protect medical marijuana states,” The Hill, July 27, 2017.)
The bill essentially protects states that have legalized medicinal marijuana from interference from at least one arm of the federal government, which is a huge win for pot proponents overall, and even better for marijuana stock market bulls.
Remember that marijuana is in a very precarious legal situation in the U.S. While many states have legalized medicinal use and some have even included recreational pot, the federal government still classifies all marijuana as illegal. Furthermore, through a rule known as preemption, the federal government technically has the right to go into states and enforce its law, superseding state law.
Now, obviously, such moves would be politically dangerous and may even lead to a showdown in the courts, but at the moment, the U.S. government does have the ability to shut down marijuana operations all across the country, even in places where it’s legal. At least, it has the power on paper.
But this recent amendment goes a long way towards helping protect those states from federal intervention. With the bill passed and the amendment included, the Department of Justice will at the very least be unable to hinder the legal pot business.
This is obviously a huge win for the marijuana stock market. Marijuana laws that protect those already burgeoning legal sectors are going to go a long way towards paving the foundations upon which the industry is going to be built.
The amendment was also passed despite U.S. Attorney General Jeff Sessions asking that the committee not include the amendment.
Sessions is known for his crusade against marijuana, and he is probably the single most feared politician in the White House when it comes to negative marijuana laws.
The man has made it clear that he does not like the idea of legal weed and has tried more than once to extend the reach of the federal government in this area.
But that’s where the marijuana news once again turns positive.
President Donald Trump has not been very fond of Sessions lately, calling him out publicly on Twitter. Many reports claim the president is angry with Sessions over how the attorney general recused himself from the Russian collusion investigation.
Setting all the politics aside, what’s important for marijuana stock market bulls is that Sessions may be on the way out. After all, Trump has seen many of his more prominent higher-ups resign over less.
Of course, it’s only speculation at this point, but rumors have been swirling that Sessions is nearing the end of his tenure at the White House. And that would most likely be good news for marijuana laws.
While it’s entirely possible that the next attorney general that would replace Sessions could be just as bad for marijuana, if not worse, there’s also a good chance that we’ll get someone less dogmatic on the issues.
So while you never really want to wish ill for people, Sessions’s removal would most likely be a boon to the marijuana stock market. Whether he’ll be removed is another matter entirely, especially considering he was one of Trump’s earliest political supporters.
But all the same, marijuana laws will likely be in a safer position with a new attorney general. All this political news playing out might impact your investments, so paying attention can pay off.