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On Monday 19 April, the US House of Representatives passed the Secure and Fair Enforcement Banking Act , acting as a safe pass for financial institutions to service cannabis operators.
At a federal level, cannabis would be decriminalised so it is no longer classed as a class one drug, which should suit Democrats.
Most meaningful change could happen at the state level.
Global X suggests that New York “could very quickly become one of largest legal cannabis markets in the United States.” Global X points to figures showing legal and illegal cannabis sales could hit $4.6bn by the end of 2023 and $5.8bn by the end of 2027.
18 states have now put in place legislation allowing the sale of cannabis.
Getting Federal blessing might be the prize when it comes to the legalisation of cannabis, but investors should watch out for what’s happening at a state level.
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