Getting more open
While the progress of legalizing cannabis has been slow in the United States, there are signs that the country has become more open to the idea than before. With the advancement of the SAFE Banking Act of 2019 by the House Financial Services Committee in April, things appeared positive. Last year, the United States passed the farm bill, which legalized hemp at the federal level.
Canopy Growth isn’t optimistic in the near term
Canopy Growth (WEED) recently announced a deal to acquire Acreage Holdings (ACRGF) provided that the United States legalizes cannabis at the federal level. The contingency-based nature of the deal’s structure suggests the uncertainty that exists about legalization in the United States.
In a recent interview with The Street, Canopy Growth’s CEO stated, “We have nothing in over the next 24 months that requires input from the U.S.”
While some of the United States states have fully legalized cannabis, the country still prevents cannabis companies such as Canopy Growth and Aurora Cannabis (ACB) from operating in those states due to the federal hurdle, which has created an issue for the states that have legalized cannabis.
However, this issue is being addressed. In April, Senator Cory Gardner reintroduced the Strengthening the Tenth Amendment Through Entrusting States Act to the Senate. The bill seeks to amend the Controlled Substances Act and certain provisions related to marijuana so that each state will have the right to determine how to regulate marijuana without interference from federal authorities.