In the united states, the legalization of cannabis is an important societal trend and a hot topic for debate. Cannabis is listed as a “Schedule I” drug due to its high potential for abuse and no accepted medical use. Cannabis producers and investors are keen to know when will cannabis be federally legalized? But what the word “Legalization” holds in itself for cannabis?
Cannabis legalization is removing criminal penalties and replacing these penalties with regulations on commercial cannabis activity. Thus, legalization permits cannabis activities such as production, distribution, possession, and recreational use.
History of cannabis policies:
Cannabis has a long history of human use. The cannabis plant originally evolved in Central Asia. This plant was introduced into Africa, Europe, and America. Ancient cultures used to grow the plant as herbal medicine. Some evidence shows that people were aware of the psychoactive potential of this plant.
The start of the Mexican Revolution in 1910 introduced the recreational use of cannabis in the U.S. However, soon in 1930, the federal government criminalized marijuana nationwide under “The Marijuana Tax Act of 1937”. This act-imposed tax on the sale, possession, or transfer of all marijuana products. Later, the Controlled Substances Act of 1970 listed cannabis at the top of the “Schedule I” controlled substance.
Since the ban on marijuana, the potential producers and investors of cannabis are struggling to legalize it. California first legalized marijuana for medicinal use under the Compassionate Use Act of 1996. After that, 29 states allowed the use of cannabis for limited medical purposes. The adult recreational use of the small amount of marijuana has been legalized in fourteen States and two Territories. Investors hope that all states will sooner or later legalize cannabis, and ultimately the federal government will do so as well.
Benefits of legalization:
Biden’s win is a new ray of hope for investors while cannabis is still illegal under U.S. federal law,. Legalizing the recreational use of marijuana have a strong potential to boost the economy. New York Gov. Andrew Cuomo plans to legalize marijuana for adult recreational use to eventually create 60,000 new jobs, $3.5 billion in economic activity, and $300 million in tax revenue. Cuomo’s plan helped the marijuana stock boom with new hopes.
Researchers found that “the rates of marijuana use by young people are falling despite the fact more U.S. states are legalizing or decriminalizing marijuana use and the number of adults using the drug has increased”. Government can impose stringent regulations on cannabis consumption after its legalization. These regulations will also reduce the black market sale and control the quality, efficacy, and use of marijuana. Besides, taxation of marijuana will generate enormous tax revenue as well.
While there is a hope of legalization of marijuana at the federal level, investors should invest in the booming cannabis stocks. BioMedican is experiencing explosive growth in one of the fastest-growing markets in the world today: cannabinoids. BioMedican has the potential to lead the cannabis market with its advanced biosynthesis. We invite our investors to partner with us and be a part of the booming cannabis market.
- Jim Dryden, “As More States Legalize Marijuana, Adolescents’ Problems with Pot Decline,” wustl.edu, May 24, 2016