Will U.S. Legalization Hurt International Marijuana Stocks?

Will U.S. Legalization Hurt International Marijuana Stocks?

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Marijuana stocks rose this week on news that Republican-led measures to legalize marijuana are spreading in the United States.

The main beneficiary of the positive news appeared to be U.S. marijuana stocks, but some international stocks also rose after the news surfaced.

Shares of cannabis companies in and out of the U.S. have been hammered in 2021, with many at record lows.

So much so that JPMorgan Chase recently announced restrictions on trading in some U.S. marijuana stocks. With that in mind, the price surge is clearly welcome.

Persistent stock discrimination

For those who haven’t followed, marijuana stocks work in an odd way in the US.

Most are in the US marijuana stock Trading on major U.S. stock exchanges is prohibited, while Canadian stocks are allowed.

This creates a potential scenario where increased access to major stock exchanges for U.S. cannabis companies could have a direct impact on Canadian cannabis stocks.

It’s unclear if the current legislation being passed in Washington, D.C., will eventually become law, but, one thing is for sure, when marijuana legalization is finally passed in the U.S., it will have a knock-on effect on the international industry.

People who are heavily invested in international stocks may turn to U.S. stocks, and then U.S. companies will have more capital to expand their operations and compete with international companies in ways hitherto impossible.

When did the US legalize it?

Anyone who claims to know exactly when marijuana was legalized in the US is probably trying to sell you something because no one knows for sure.

There are a number of reasons why marijuana is still banned at the federal level in the United States, not the least of which is public support for this policy change.

Gallup polls have conducted an annual legalization survey since 1969. At the time, only 12 percent of American voters supported legalization.

The results of the annual survey were released recently, and approval was steady at 68 percent.Clearly legalization is popular in the US

Unfortunately, as history has shown, support legalization The percentage in Congress is much lower because year after year of legalization fails to pass. The president can also be legitimized by executive action, although the process is much more cumbersome, but the same lack of action will happen anyway.

Legalization will eventually happen at the federal level in the US, and it may take longer than one might expect. Meanwhile, competition for international marijuana stocks on major U.S. exchanges will continue to diminish.



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