Most Americans still want to know President Trump’s stance on marijuana legalization. Democrats have voiced their support. Even Republicans have discussed their stance against legalization or support for more cannabis research. However, President Trump has never directly spoken about cannabis legalization. Now, a re-election campaign spokesman said that the administration wants marijuana to remain illegal.
Trump administration wants to keep marijuana illegal
On Wednesday, a Forbes article discussed how President Trump’s re-election campaign spokesperson said that the administration thinks that marijuana and other drugs should be illegal. In an interview with Las Vegas CBS affiliate KLAS-TV, Marc Lotter, director of strategic communications for the Trump 2020 campaign, said, “I think what the president is looking at is looking at this from a standpoint of a parent of a young person to make sure that we keep our kids away from drugs.”
It appears that President Trump doesn’t favor legalizing marijuana at the federal level. Last year, he said that he doesn’t have an issue with states legalizing marijuana. He wants each state to make an individual decision. Recently, President Trump issued a signing statement. Now, he can allow federal interference in states that have legalized marijuana. He denied protection to states’ medical marijuana programs. He also included another rider that will block Washington, D.C.’s rights from using local tax dollars to legalize marijuana sales.
However, President Trump’s budget proposal allows FDA funding for research on CBD.
Currently, President Trump’s stance on marijuana legalization seems very confusing. He hasn’t discussed the issue. Meanwhile, Democratic candidates including Bernie Sanders, Pete Buttigieg, Andrew Yang, and Tulsi Gabbard have taken bold stances and support cannabis legalization.
Harsher punishments for drug-related crimes
Recently, a Marijuana Moment article discussed that President Trump supports harsh punishment for drug-related crimes. He applauded countries like Singapore and China that have the death penalty for drug offenders. President Trump mentioned that he would like to issue strict laws in the US. In contrast, Tulsi Gabbard thinks that legalizing all drugs and not just marijuana will keep a check on drug-related crimes. Regardless of issues at the federal level, states have taken their own stances to legalize marijuana. New Hampshire, Connecticut, and Missouri are taking steps to legalize marijuana in 2020.
Cannabis legalization and the cannabis industry
Cannabis legalization in the US will benefit cannabis companies that face financial difficulties. Lower revenues last year dragged the sector down.
Canopy Growth (NYSE:CGC)(TSE:WEED) discussed in its third-quarter earnings how the US is an important market for the company. Canopy Growth plans to expand in the US market through its deal with Acreage Holdings. The deal will only come into effect when the US legalizes marijuana. The company has been focusing on developing its CBD products. However, CBD products face challenges in the US due to the FDA.
Cannabis stocks saw a sudden rise after Canopy Growth’s impressive results. Aurora Cannabis’s (NYSE:ACB) earnings and its outlook dragged down the sector this month. Canopy Growth stock closed with a gain of 2.4% on Thursday, while ACB stock fell by1.7%. Cronos Group (NASDAQ:CRON) rose 0.69%, while Aphria (NYSE:APHA) rose 0.71%.