For decades, marijuana has been public enemy number one of the US Federal government with its designation as an illegal substance. It was just four years after the Prohibition Act that had made alcohol illegal was repealed, that President Franklin Roosevelt came up with the Marihuana Tax Act that effectively denied all US citizens the right to possess it, though it was later replaced by the Controlled Substances Act. But where the federal government has so far shut the door, the states have taken their own stances on the issue and passed their own laws regarding cannabis use, and with different uses of it becoming legal, investment opportunities have come for consumers. It’s helpful to know these state laws so that you know which marijuana companies based in those states are likely to do well.
Medical Marijuana Use Is Different From Recreational Use
As of today, 33 states have now legalized marijuana use in some form or another. But only one-third of those states allow it to be used with a lot of leniency for recreational purposes. Although even in recreational marijuana states, some like Vermont have limits on what you can grow and possess, and even restrict who can sell it. For those states who have legalized marijuana for medical purposes, they have some stringent guidelines including requiring those who use it to have ID cards verifying they are cleared to do so such as Arizona. This state, like some of its other counterparts also has rules stating that you need to be diagnosed with diseases like Cancer, HIV, Hepatitis C, Crohn’s disease, and PTSD among others. In this state and many others, you also need a doctor’s signature on the right documents confirming your condition. To see which states currently legalize marijuana in some form or another, look for a legal marijuana map that lists which states marijuana is legalized. According to Money Morning, “Right now, 33 states have some sort of marijuana legalization in effect.That could balloon to 37 by the end of 2020, when four states vote on marijuana reform for the first time. Another five states that already legalized cannabis for medical use are now pushing for recreational legalization as well.”
The Difference Between Regular Cannabis And CBD
An aspect of marijuana-based substances that can be confusing is the difference between actual cannabis and CBD. The key is the absence or presence of THC, the ingredient that causes people to get high when they inhale it. CBD products that are often derived from hemp and usually come in oil or cream products, are legal on the federal level so long as the THC is 0.3% or less. Recreational cannabis often has a much higher level of THC in it.
How Laws Affect Cannabis Stocks
Since most recreational cannabis products are still not legal in the US but medical marijuana is, many US based companies produce and distribute products based in that area. Canada, on the other hand, has a lot more doors open to marijuana producers, so many of North America’s marijuana stocks are based there. You can buy stocks in these companies that are listed on the NYSE or Toronto exchange. In fact, buying on a major exchange is often recommended over buying OTC exchange stocks.
In conclusion, one thing to know is that marijuana legalization is picking up steam and the potential for profits are there. But it can pay to look up each state’s laws on the issue to help you with your investment decisions.