Marijuana stocks had quietly gained traction in the middle of the pandemic-marred 2020. In the New Year in fact, things are looking brighter with marijuana stocks scaling northward. Encouraging news coming from Mexico was a boon. After all, Mexican President along with the country’s Health Ministry signed new regulations that allow pharmaceutical companies to research on medical marijuana…
Thus, Mexico can now manufacture marijuana for medical usage. This is no doubt a blessing in disguise for marijuana companies, especially in the United States and Canada, which have been seeking growth opportunities in Mexico. But it’s just not medical marijuana; Mexico’s government has shown keen interest in legalizing marijuana for recreational usage as well. If recreational marijuana is passed by the Mexican government, the country will have one of the largest legal marijuana markets in the world.
By the way, marijuana stocks have been moving north after Democrats took control of the Senate, paving way for friendlier marijuana laws at the federal level. Biden’s presidential election win last year has already raised hopes of fewer restrictions on marijuana.
Lately, the Democrat-led House passed the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) and the Medical Marijuana Act. The House already designed legislation that will help banks and other financial institutions provide services to marijuana companies in legalized states without penalty.
Not only the push for marijuana banking reforms bodes well for the overall cannabis industry but expectations are also growing about marijuana decriminalization, at least at the federal level. Lest we forget, voters in New Jersey, Montana, South Dakota and Arizona legalized recreational marijuana last year, while quite a few states have legalized the medical usage of the same.
In fact, market pundits now expect the marijuana industry to experience a domino effect. The newly-legalized states will now build pressure on neighbouring states to legalize marijuana in order to curb the flight of tax revenues. And with more…
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