First, the bad news. The federal legalization of marijuana is unlikely in 2020.
The good news for investors: Federal marijuana legalization will happen eventually. It's a matter of "when," not "if."
In 2020, nine more states will be voting to legalize cannabis in some form. If all states pass their initiatives, 40 states will have some form of cannabis legalization. Already, 33 states have legalized marijuana in some form. That includes 11 that have legalized recreational use (plus Washington, D.C.).
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Nationwide, roughly 66% of Americans favor marijuana legalization at the federal level.
Despite the overwhelming support, federal marijuana legalization still faces several hurdles in the near term.
Here's what's standing in the way – and when we could see the tides turn…
When Will Marijuana Be Legal Nationwide? Don't Bet on 2020
There were positive developments for cannabis in 2019. Most notable was the passage of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act by the House Judiciary Committee in November.
The act proposes federally decriminalizing marijuana, removing it from the list of controlled substances, expunging previous nonviolent cannabis convictions, and establishing a 5% federal tax rate on cannabis.
It was the first ever marijuana reform measure to be voted on in U.S. Congress. And it was passed overwhelmingly (24-10) by the judiciary committee.
But that appears to be the end of the road for the bill. And with it ends any hope of federal legalization of marijuana in 2020.
For MORE to become law, it would need to be passed by the Senate. And Senate Majority Leader Mitch McConnell (R-KY) is notoriously anti-cannabis.
Not only is it unlikely that a republican-controlled Senate would pass the MORE Act, McConnell is not likely to even bring it to a vote.
So when will marijuana's federal legalization happen? Here's our prediction…
Federal Marijuana Legalization Predictions
At Money Morning, we don't take sides politically. We don't have time to. But we are always watching how the political landscape impacts your money.
For marijuana investors – and those that favor cannabis's federal legalization – the politics of the situation are crucial.