It’s nearly the end of 2021, and while the cannabis industry has moved in a positive direction, there are still some hurdles.
Lack of federal legalization in the US and the UK are making cannabis investors hesitant. With cannabis legal on state levels in some form or fashion, but not federally there are serious concerns about investing.
Let’s take a look at some of the biggest hurdles the cannabis industry is facing.
Federal Reform and Regulation
Despite an array of cannabis ETFs moving in an uphil direction, there are still some issues when it comes to federal reform.
There is a lot of talk surrounding federal regulation of cannabis in the US, but there is very little action. With most states legalizing cannabis to some extent, the federal level is sitting at a standstill.
Cannabis investors are shaking their heads at over seventeen million dollars in unbanked revenue because of it.
Today, there are no reliable banking options for cannabis companies, which makes cannabis investors hesitant.
And for good reason! Who wants to invest in cultivating, processing, and distributing cannabis if there are going to be hurdles collecting income from it?
Legalizing Other Substances
In July, cannabis news website Marijuana Moment reported that congress is going to vote on more than just cannabis reform.
Other psychedelic drugs like MDMA and psilocybin may also become federally legal.
The reason why this irks some investors is they may end up competing with other drug related products.
Nobody knows what the effect of legalizing other drugs like mushrooms will have on cannabis stocks.
You would think removing cannabis as a schedule I drug would be a positive moment for the cannabis industry, yet several well known cannabis stocks dropped.
The current regulations surrounding cannabis make it so people in need of government assisted living are not allowed to possess or consume cannabis.
Even if cannabis was federally legal, public housing access will be restricted for those that use cannabis.
It’s speculated that this is another reason for cannabis stocks declining.
Despite these scenarios, the cannabis industry is thriving. Pot stocks go up just as fast as they go down, which means the market is still quite strong.
Are you invested in cannabis stocks? We want to hear from you. Leave a comment below or reach out on our social channels.
As always, stay lifted!
About the author: Heather Burton
Heather lives with her husband and two children in beautiful British Columbia. Her passion has always been to enhance the lives of others by helping them reach their business goals.
Content management is her specialty, and writing is what she does best. Working specifically in the cannabis market, Heather strives to help dispensaries, patients, doctors, manufacturers and recreational users by giving them the voice they need. When she is not writing, you can find her anywhere outdoors and away from the screen.