During the midterm elections last month, two more states voted to legalize medical marijuana use (Missouri and Utah) while one more voted to legalize recreational (Michigan). That leaves 10 states with fully legal recreational and medical marijuana, and 23 with only medical. The momentum is clear.
And yet: marijuana use remains illegal at the federal level. And because the legal landscape is state-by-state, legitimate cannabis companies (not only growers but even cannabis-adjacent companies, like makers of paraphernalia) face hurdles like getting business bank accounts. It’s why you see so many American cannabis companies going public in Canada.
But one cannabis company CEO predicts the status quo in America will change very soon.
“I’m going to predict that there will be a form of federal legalization in this country in the next 18 months,” said Chuck Smith, CEO of cannabis edibles distributor Dixie Brands, on Yahoo Finance’s Morning Meeting live show last week.
His reasoning: the STATES (Strengthening the Tenth Amendment Through Entrusting States) Act, a bipartisan bill introduced to Congress in June. “Let’s make it a states issue, but if you’re operating legally in a state that has legalized cannabis, you’re not going to be subjected to prosecution at the federal level,” Smith says. “You’ll have access to banking, and you’ll have a more fair tax code.”