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Election 2020 is approaching rapidly. While the ultimate outcome remains unclear, we see several catalysts that could provide a “rising tide” to the cannabis industry, independent of which party occupies the House, Senate, or White House. Even if November’s results don’t bring the promise of full federal legalization, we believe there are a myriad of incremental measures, such as access to traditional financial services, that would be revolutionary for the industry and could garner bipartisan support given the political landscape. 

Outside of Washington, states and municipalities continue to move forward with November ballot measures to expand local access to legal cannabis in pursuit of the jobs and tax revenues that accompany a “rising tide of legalization.” 

The Bengal Capital Team

Barbarians at the gate: institutions are buying US cannabis stocks

“Big institutional investors are buying big slugs [of cannabis stocks], quietly.” Putnam and Fidelity, massive institutional asset managers, have holdings in some of the industry’s most recognized names including 4Front, Cresco Labs, Green Thumb Industries, and Curaleaf. Read more on how some institutional investors are getting involved in Investopedia here.

The cannabis industry needs banking now

“Without banks, state-compliant cannabis businesses can't accept credit cards, acquire loans, set up deposit accounts, write checks, run payroll or pay taxes. All this currently enables money-laundering, presents a safety hazard, and prohibits the US from keeping pace with nearly all of its neighbors in the Western Hemisphere in the new commercial global cannabis economy. The cannabis industry remains unbanked - for six years now - and the government is at fault.” Read the argument for cannabis banking from Robert Hoban of Hoban Law in Forbes here.

Local ballot measures across California could significantly expand marijuana industry footprint

The prospect of significant expansion for California’s legal cannabis industry is on the ballot this fall in at least 26 municipalities. These pro-cannabis initiatives could result in as many as 150 new business permits for the industry. Read more about California ballot initiatives in MJBiz Daily here.

Cannabis legalization measure qualifies for November 2020 ballot in Montana

Medical-use cannabis has been legal in Montana since 2004, and now residents are getting the chance to vote for adult-use legalization this November. To get this initiative on the November ballot, an activist group submitted 130,000+ signatures (more than 10% of the state’s population). Read more about the Montana ballot measure in THCNet.com here.

Where vice presidential candidate Kamala Harris stands on marijuana

The new Democratic vice presidential nominee, Kamala Harris, was a leading advocate for the MORE Act, which would have descheduled cannabis on the federal level. It remains to be seen whether this VP pick will push Biden’s cannabis policy towards a more relaxed posture in the future. Read more on Senator Harris’s history with cannabis in the Marijuana Moment here.