Cannabis Post Election - Almost All Good News
The midterm election results were very positive for the growing legal cannabis industry. Here are the highlights:
Democrats captured the House of Representatives. A large majority of Democrats favor legalization efforts which could create a legislative tailwind for the industry.
Michigan became the 10th state to legalize adult use (21 or older) becoming the first Midwest state to do so.
New York Governor Andrew Cuomo was re-elected which will allow him to continue pushing for legalization in the state.
House Representative Pete Sessions was defeated. Through his appointment as Chairman of the House Rules Committee, Pete Sessions apparently blocked over 36 marijuana-related amendments during his tenure.
District Attorney Jeff Sessions resigned. Immediately following the election results, President Trump asked for his resignation. I do not think such action had anything to do with the cannabis industry specifically, but Sessions was an open opponent to legalization efforts and created a risk of federal interference in states where cannabis had been approved.
Outside of the North Dakota setback, the legal cannabis industry had a HUGE win in the election. Still, a divided Congress is likely to be a headwind going forward. This is mainly due to the heightened polarization between the two parties. There is so much animosity, I have a hard time seeing anything getting done out of spite for one another.
Still, the cannabis legalization effort could be a bridge between Republicans and Democrats. Republicans have a slight majority in favor of legalization, and this could be enough to get a bi-partisan bill of some kind passed. Another consideration is who will be Jeff Sessions replacement as Attorney General? The consensus seems to be anyone is likely to have a softer stance than Sessions did on the cannabis industry. Time will tell. As of now, the momentum is positive.