Federal Legalization of Cannabis IS Set For 2022

“The only place cannabis is controversial is in Washington D.C.”, so says Representative Mace  (Republican, South Carolina) who introduced a bill on November 14th entitled “The States Reform Act” to federal legalization of cannabis on the Federal level.  That bill has not gained much traction since its introduction, least of with in the financial markets.  Also, there was the SAFE Banking Act that was tagged onto the NDAA (National Defense Authorization Act) in the House of Representatives, passed there, but was stripped out of the Senate version.  There were other attempts to decriminalize marijuana on the Federal level throughout 2021.

Over the weekend, the Bi-Partisan Cannabis Caucus to Congress (Yes, there is one) put together a memo outlining their goals for 2022.  In this, they stated their goals and objectives for legalization of marijuana in the coming year.  70% of Americans want legalization of marijuana.  This is from Gallup Polls.  And as Representative Mace points out, the disparity of the several states having so many different laws should push the Federal government to updating its own laws that allow for this.

The Blue Wave & Federal Legalization of Cannabis

There was a big move in the stock market for cannabis stocks in November and then again in January.  This was because of the so-called Blue Wave that would usher in federal legalization of marijuana.  But, since then cannabis stocks have largely been sliding lower and lower.  This is because for one reason, cannabis legalization has not occurred.

My thinking on this is that Federal legalization of cannabis is going to happen, not if.  And, with the momentum, this memo could be the outline of what is likely to happen.  The memo states they are going to introduce something into almost every single committee in Congress and put together a broad, and comprehensive bill for legalization of cannabis.

$18B All-Cash Business & The Feds

If there is one thing I know about the Feds, they hate cash.  They cannot follow it.  So, one important thing to keep in mind is that passing this Federal legalization of weed legislation would allow for having all of these businesses throughout the United States to utilize banking.  Feds will get what they really care about: Taxation and the ability to see where all of that money is.  After all, wasn’t the war on drugs really about things like this?  The Feds hate cash simply because they cannot watch it.  Don’t believe me?  Go to your bank and try and withdraw or deposit $10K.  hahahahaha… good luck.

Timing Federal Legalization of Marijuana

The timing on this would be optimal for federal legalization of cannabis.  2022 is an election year.  The Blues will want to show voters they accomplished something comprehensive.  I wonder is it possible and more likely that the Reds will trump the blues at this point?

Truth is, federal legalization of cannabis is mostly a certainty, not a possibility.  Putting together comprehensive legislation will allow for the United States to remain competitive in research & development of pharmaceutical technology derived by cannabis, help with resolution of PTSD issues with military members, as well as generally bring laws in line with the general trend of the people of the United States.

I am looking for this outlay of events: introduction of bills to the committees throughout the beginning of the year.  Then a vote on the matter in late spring, reconciliation and then passage in early summer.

The stock market and cannabis stocks will very likely move in accordance with this momentum.

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6 thoughts on “Federal Legalization of Cannabis IS Set For 2022

  1. If federal legalization of cannabis does get passed, Will POTUS sign it(?)
    If he would, then why hasn’t he been pushing for it to get his party re-elected in midterm elections(?) 
    I think POTUS is controlled big time by his staff, and his wife, on almost everything except this one issue. It seems that almost everyone is afraid to mention it. I think it’s the elephant with a bad memory, in the room.
    I think POTUS’s staff and Dems, might be waiting until closer to mid-terms to get POTUS on board. I think it boils down to, does the POTUS want to be a Lame duck, or does he want his party to keep control of both houses(?) Honestly I don’t think POTUS knows what he wants about anything. He can’t even seem to carry on an intelligent conversation with someone who will honestly challenge him, like Trump did almost everyday, President Biden hasn’t even done that once IMHO.
    I am not a Republican or a Democrat
    I can think of two things that I think would turn the cannabis sector around on a dime.
    1. If Potus would get on board. ( make an announcement stating he supports legalization of cannabis at federal level. I think investors fear President Biden might veto any  Federal cannabis legislation. I think many  analysts and investors don’t think Marijuana legalization will ever as long as he is President. I have read that many times.
    I think that’s a huge factor affecting cannabis sector,and why short sellers seem to have no worries. If Dems are smart, I think they would try ad convince POTUS to change his position, and soon, or loose control of the House of Representatives, making him a lame Duck.
    2. POTUS resigns for health reasons, and the VP who I think wants cannabis legal at Federal level is sworn in as President.
    I do think Federal legalization might get passed in 2022, but will POTUS sign it into law is another thing.  If he would sign it, then why hasn’t he been pushing for it, and try to help his Fellow Democrats get re-elected.(?) Rhetorical,, just food for thought, not a question, but feel free to respond.
    I personally think the odds of President Biden signing Federal legalization of Cannabis in 2022,  are about the same as him resigning his office due to health reasons with dignity, and the VP, being sworn i as president.

  2. @cannabis-investing @awesame I think the process of pushing through legislation is a process and we will see it play out.  Remember, POTUS was a Senator for many years and he knows everyone there.  They will do what they need to do to get it pushed through. 

    I think all of the “attempts” may have been nothing more than to drop hints to the people of the United States that this is going to happen.  If enough of these hints are dropped the attitude could turn to “It’s about time”.  

    This is the year and getting closer and closer to mid-terms is the move to expect.  Keep your powder kegs dry because this will be big.  

  3. I understand the process D.H.
    It can get very ugly too.
    It seems to me to be common knowledge that President Biden is against legalizing marijuana at the Federal level.
    The entire cannabis  market reflects that IMHO, short selling across sector reflects that IMHO, as well.
    The process for when a President opposes his own parties legislation, while his party controls both houses,might get ugly.
    I think the cannabis stock market and short selling, currently thinks Federal legalization will not happen in 2022. I think that is obvious.
    Just my opinion. Plus I have read that all over the place. lol

  4. What I don’t understand about is WHY is POTUS he sooooo against Federal legalization and it is unbelievable that the Safe Act hasn’t passed it seems to be just the Pawn in the chess game if it passed everything else would follow
    I truly hope that it at least passes so business can be business’s and Institutions and stock market can come to life.

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