US marijuana laws
The US is one of the most anticipated markets for companies such as Canopy Growth (WEED), Aurora Cannabis (ACB), CannTrust (CTST), KushCo Holdings (KSHB) for cannabis legalization. However, the current conflict between the states and federal authorities leaves a lot of room for confusion. For example, even if a state has legalized marijuana, operators still face the threat of being prosecuted by the federal authorities.
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Departure of Jeff Sessions
This fear was particularly amplified after the former Attorney General, Jeff Sessions, rescinded the Obama era Cole Memo. However, the recently introduced Strengthening the Tenth Amendment Through Entrusting States (or STATES) Act rekindled hopes for marijuana operators in states where it is legalized. The new Attorney General, William Barr, has expressed his support for the act, which would let each individual state decide how they’d like to handle marijuana legalization (MJ) within the state.
If it passes the Senate, the last stop for the STATES Act will be President Trump. According to Politico, the co-sponsor of this bill, Senator Cory Gardner, indicated that he had been assured by Donald Trump that he will sign the bill if it gets to him. However, the Senate Majority Leader Mitch McConnell, who previously blocked the bill when it was first introduced in June last year, could prove to be a big hurdle for the bill to overcome.