In the Quest for National Legislation, New York May Have Cracked This Thing Wide Open
New York’s recent legalization may have been the straw to break the camel’s back.
Only 17 states have legalized cannabis on a recreational level. Since there are 50+ states, it suggests there’s a long way to go. But what that also means is that 43% of the US population lives in a state where they can readily access cannabis products. Ten years ago, such a thing would have been practically incomprehensible, but just this past April New York and New Mexico, shortly followed by Virginia, all legalized cannabis, and New York led the charge.
At the rate that change is sweeping the nation, the number of states where cannabis is legal is almost guaranteed to increase within the year. Further, while only 43% of the country has access to legal cannabis, 68% of the country supports it, which is a record high, and more than double the 31% recorded support from 2000. Unfortunately, that increase doesn’t automatically translate to definitive action for the states lagging in their efforts to pass legislation in cannabis’ favor. However, New York state was a massive win for cannabis, and it may have been the proverbial straw that broke the camel’s back as it pertains to state level acceptance and general efforts to guide the way.
New Mexico and Virginia joined New York in legalizing recreational cannabis in April, and Connecticut, Delaware, Minnesota, and Rhode Island are all actively working toward legislation. That would put the United States at 21 states where cannabis is legal, almost half of the country, and each state pushes the needle slightly closer to federal legalization.
The Future of Legal Cannabis Looks Bright
It’s been a long and hard fight, but public opinion on cannabis has shifted quickly, helped in no small part by the pandemic. Recall, at the beginning of Covid when quantantines were first introduced, cannabis was deemed an essential business, which helped boost sales across the board to the tune of hundreds of millions of dollars in taxable revenue.
Further, many states have started to try and repair the damage cannabis convictions have done to disproportionately large chunks of minority populations. While the scope of that repair is limited at present, it is encouraging to see different states like New York working to overturn convictions and clearing records — as they should.
Laws need to adapt to significant changes in public opinion. California, Illinois, and New York are home to the three biggest states in the United States, and all are home to cannabis loving populations. Some might point out that those are all Northern, Democratic States, but political policies are changing. Southern States, systemically right leaning, may not be receptive to recreational cannabis, but many are coming around to medical cannabis legalization. For instance, Alabama is taking significant steps to make sure people have access to medicinal cannabis. Consider Virginia, one of the proudest Southern states, recently legalized cannabis for recreational use.
Business Benefits Are Rolling In Too
There are many interrelated aspects to cannabis legalization brewing as well. Many government bodies like the FDA are examining how their work will be impacted now that cannabis is no longer a controlled substance under some federal government guidelines. This will impact marketing and export rules, many of which are currently unfriendly to the industry maturing. Key operational concerns are also getting some legislative love. In April, the U.S. House of Representatives passed legislation allowing banks to provide services to cannabis companies in states where it’s legal. This is a huge, incredibly necessary step to remove a substantial barrier to industry growth.
These legislative moves likely will impact industry investments as well. The pandemic helped to sink investments across the board, and cannabis wasn’t the only industry that suffered, but many predict investors will return this year and next thanks to the undeniable strength of sales in 2020. We’ve essentially proved that cannabis is a recession-proof, pandemic-proof industry, which is not only attractive to investors, it’s not a claim that most other industries can make.
So, yes. The future of cannabis looks bright. Beyond legalization of recreational cannabis, the market is maturing rapidly. Some states are working on more effective delivery programs, others, like California, already have theirs in place. More and more lifestyle brands around cannabis are popping up, expanding the industry beyond consumable products. Prices in states with a more mature market have levelled off to a near reasonable level, and in newly legal states we’re continuing to see prices drop. Even better? Positive changes like these will only intensify as legislative support increases amid the states.
