The U.S. federal legalization of marijuana is more promising now than it ever has been. At least 10 states have it on their 2020 ballots, while there are several bills pending on the federal level.
This is excellent news for U.S. cannabis stocks.
You see, the U.S. House of Representatives Judiciary Committee approved a bill in late-November 2019 that, if passed, would remove cannabis as a Schedule I substance under the Controlled Substances Act.
Now, the bill is headed to the full House of Representatives.
Judiciary Committee Chair Jerry Nadler presented the Marijuana Opportunity Reinvestment and Expungement Act (MORE) to completely legalize marijuana for any state that approves.
Beyond that, the bill would enable a 5% sales tax on all marijuana sold. The extra money would then go toward career training and legal assistance for people impacted by the decades-long war on drugs. Some initiatives in the bill would expunge records of those with marijuana-related offenses. While other parts would require government agencies to accept security clearances from cannabis users.
The bill itself is a good thing. And if it passes, it'll have a powerful impact on the industry and those impacted by out-of-date laws.
Truly, this is a big deal for U.S. cannabis stocks as we inch closer to 2020...
We're One Step Closer to Nationwide Legalization
Beyond just the MORE Act, other legislations like the SAFE Banking Act, bills for improving veteran access to marijuana, and cannabis research are underway as well.
But the MORE Act is the kind of marijuana legislation people have truly been waiting for.
When it comes to the Judiciary Committee, it's not some small part of the House with little influence. With its huge oversight over major U.S. laws, a seat in the House Judiciary Committee is one of the most sought-after positions in Congress.
Now, we're going to make it clear that the MORE Act isn't likely to be the one to legalize marijuana - not in 2020, at least. Money Morning's Director of Cannabis Investing Research Greg Miller says it's unlikely to make it through the Senate. Beyond that, he says it's entirely possible it might not make it through the entire House - even with increased support on marijuana legalization.
Of course, Greg Miller says it would be phenomenal if he was wrong, and the House ultimately votes in favor of the bill. He just thinks there's only a small chance that would happen.
That being said, the MORE Act potentially not becoming a law doesn't take away from its important role on the road to federally legalized cannabis.
The Judiciary Committee voting for the decriminalization of cannabis overall is historic within itself. The vote is a big deal.
But there's even more to it than that for the best cannabis stocks...
Cannabis Continues Its Trek Towards "Normalization"
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For months now, Greg Miller has talked about the increasing "normalization" of cannabis. Just one year ago, the bill wouldn't have even been brought up by the committee. Jerry Nadler, especially, would've likely buried any cannabis-related bill so his members wouldn't have to make a "challenging" vote.
However, this year, Nadler surprised us all with his sponsorship of the MORE Act. Despite previous reservations, the vote on cannabis isn't as "challenging" as it would have been just one year ago. And the fact that it passed in the committee emphasizes this.
Of course, with the way the voting looks on the bill, you'd think it was an issue with partisanship. The votes in favor of cannabis legalization are from Democratic members, while the votes against it are from Republican members.
But it's not exactly as cut and dry as many media outlets might lead you to believe.
Greg Miller listened carefully to the proceedings by the committee. Many of the Republican members want to be a part of marijuana's legalization. The members even acknowledge that Congress is far behind everyday Americans and the states they reside in when it comes to the issue.
Many of the Republican members don't completely disagree with the bill, either. But some think certain parts need to be changed or that the bill itself is premature.
Take U.S. Rep. Doug Collins (R-GA). He voted against the MORE Act. Yet, he's also said the government needs to shift its attitude on processes because the federal government has failed in that way.
So, every member of Congress is aware that federal legalization is on the horizon, and regardless of affiliation, they want to be a part of it.
And this is fantastic news for the marijuana industry. It's bound to set the stage for a future marijuana legalization bill that will pass both the House and Senate and then receive a signature by the president.
While it may not happen immediately, this news has Greg Miller hopeful legalization could happen at some point in 2020.
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