Last week we saw a big shift in the US political landscape. This shift has important implications for the US cannabis industry and cannabis investors need to know about it.
After a strong performance on Super Tuesday, former Vice President Joe Biden has surged in the polls, becoming the candidate with the highest probability to win the Democratic primary.
According to a new poll from Real Clear Politics, Biden now has a 53% chance of winning the Democratic primary, up from a 17% chance reported in late February. Bernie Sanders has a 36% probability of winning, but this is still 20 percentage points lower than Biden.
This is an important development for cannabis investors.
Sanders was the most pro-cannabis candidate in the field, vowing to legalize cannabis on the first day he came into office. If Sanders won the nomination and the presidency, it could have been great for the cannabis industry and cannabis stocks.
I recently wrote about stocks that could pop on a Sanders win.
But now, it looks like Biden will be the nominee.
Cannabis investors want to know – is Joe Biden good for cannabis stocks?
Biden is More Cannabis Friendly than Many Realize
Biden hasn’t been the biggest cheerleader of legalization. He has made a few comments over the years that have led some to believe that he is against legalization.
For example, at a town hall in Las Vegas back in November of 2019, Biden suggested cannabis could be a ‘gateway drug.’
Here’s a clip from the Washington Post.
“The truth of the matter is, there’s not nearly been enough evidence that has been acquired as to whether or not it is a gateway drug,” Biden said. “It’s a debate, and I want a lot more before I legalize it nationally. I want to make sure we know a lot more about the science behind it.”
However, despite these comments, I still consider Biden to be a pro-cannabis candidate. I think he could end up being very good for the US cannabis industry and here’s why…
3 Reasons Joe Biden Should be Good for US Cannabis Industry
#1 – Biden Wants to Decriminalize Cannabis
Biden is definitely in favor of reforming cannabis laws. Biden has said on multiple occasions that he wants to decriminalize cannabis. Here are some more details from CNN.
Asked by CNN if the former vice president supports legalizing marijuana, Andrew Bates, a Biden campaign spokesman, said Biden believes the drug should be decriminalized and that decisions on legalization should continue on the state level.
That position isn’t as dramatic as Sanders, but it would be an important step in the right direction and it would set the stage for more legislative updates.
#2 – Biden Wants to Reclassify Cannabis as a Schedule II Substance
The federal government has classified cannabis as a schedule I drug, meaning it has no medical benefit and a high potential for abuse. This is the same classification of hardcore drugs like heroin and cocaine.
Biden has expressed support for reclassifying cannabis as a schedule II substance, which means it still has the potential for abuse but may have medical benefits. A reclassification would open the door to a lot more research on cannabis.
#3 – Biden Will Toe the Line on Cannabis for the Democrat Party
Cannabis has support from both sides of the aisle, but it has more support from the democrat party, politicians, and voters.
According to a recent study from Pew Research, “Nearly eight-in-ten Democrats and Democratic-leaning independents (78%) say marijuana use should be legal. Republican and Republican-leaning independents are less supportive, with 55% in favor of legalization and 44% opposed.”
Joe Biden is a lifelong, very loyal democrat and I expect him to toe the party line on cannabis.
The Big Picture on Joe Biden and Legal Cannabis
Joe Biden has taken a lot of flak from his fellow Democratic presidential candidates for being one of the least pro-cannabis candidates. However, a closer look at his official positions and his recent comments on cannabis reveal that he is far from being anti-cannabis.
We’ve got a long way to go, but if Biden secures the democratic nomination and wins the presidential race, I expect it to be a strong catalyst for the US cannabis industry.
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.
Mr. Vodicka brings his expertise and guidance to the members of Cannabis Stock Trades.
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