#49 - What Will US Legalization of Cannabis Look Like?

We're finally back in the studio! This week we look forward at the various ways the US could legalize cannabis

1) Why You Should Care about US Legalization

- US is the crown jewel of the international market

- Over $12B USD in state-legal sales in 2019 (vs $1.2B CAD for Canada)

- Huge capital available once NASDAQ & NYSE listings are available

- US has higher prices, limited licenses and far less government regulation for cannabis

2)  How will US Legalization Go Down?

- Likely to be a phased approached as opposed to one big legalization

Several possibilities for how it can be done:

a) Decriminalization

b) De-scheduling or Re-scheduling (may come under FDA regulation)

c) SAFE Act - access to banking and lending

d) STATES Act - allows state law to be compliant with federal law

e) Full Legalization - federally mandates legalization across entire country

3) What is the Biden Plan? Will it actually happen?

- Biden Plan is a marketing document designed to excite the base

- We need to see Biden mention the plan or champion it before believing it

- Biden Plan involves medical legalization + STATES Act

4) How Will Legalization Change the Industry?

- Effect on industry will depend on the type of legalization

- SAFE vs STATES vs Full Federal Legalization

- Being on US Exchanges will be the biggest catalyst

5) Will cannabis be allowed to cross state lines?

6) How to Invest around Legalization