Investor confidence improves as U.S. Cannabis stocks can compete with Canadian stocks, again.
- Investors concerned about the uncertainty of investing in U.S. stocks have kept their money on the sidelines or have flocked to Canada, until now
- Marijuana Stocks up since the announcement
- Investors feel this will stabilize and help grow the cannabis industry
- Former Speaker of the United States House of Representatives John Boehner and former two-term Governor of the State of Massachusetts Bill Weld enter the Cannabis Industry
U.S. Publicly traded marijuana companies praise Trump’s to decision to protect the marijuana industry. They also welcome former Speaker of the United States House of Representatives John Boehner and former Governor of the State of Massachusetts Bill Weld into the Cannabis Industry!
Both news items are fantastic for U.S. publicly traded marijuana companies!
Ever since U.S. Attorney General, Jefferson Beauregard Sessions, rescinded an Obama-era policy used as a protection for states that have legalized marijuana, U.S. marijuana stocks have decreased significantly and have continued on a downward trend. Meanwhile, our neighbors to the north have see significant increases in Canadian-based marijuana stocks.
John Boehner used to oppose marijuana legalization while he was Speaker of the House, but said his thinking has evolved! Boehner said “I’m convinced de-scheduling the drug is needed so we can do research, help our veterans, and reverse the opioid epidemic ravaging our communities.”
Bill Weld, two-term Governor of Massachusetts and 2016 Libertarian candidate for Vice-President has been an advocate of legalizing marijuana for a while. Legalization/decriminalization of Marijuana has been a primary issue for the Libertarian Party since its inception in December 1971.
The best marijuana in the world can be grown in the United States, and that’s ultimately good for America.
For those who weren’t watching last week, President Trump became the first executive in decades to finally recognize the plain meaning of the U.S. Constitution when it comes to marijuana. That is, the federal government only has authority to regulate commerce between the states, but has no authority to regulate commerce that does not cross a state boundary. This is why states are able to legalize, tax and regulate marijuana products within their own boundaries.
Trump’s appointee as U.S. Attorney General, Jefferson Beauregard Sessions, has seen this differently. Although Sessions gained marks as a strict constitutionalist during much of his time in Congress, he has relied on terrible Supreme Court precedents during his tenure as Attorney General to put unnecessary obstacles in states’ way as they work to regulate their own intrastate marijuana industries.
The Court’s 1942 decision in Wickard v. Filburn is one of the most widely derided actions by the Court ever, but is commonly used as a rationale for the federal government to sidestep the Constitution’s Interstate Commerce Clause. In Wickard, the Court ruled that Roscoe Filburn could not use wheat grown on his own farm to feed his family and farm animals. Although Filburn was engaged in non-interstate non-commerce, the Court ruled federal authorities could fine him for not abiding an agricultural price-fixing program under the New Deal. In 2005, the Court extended this rationale in Gonzales v. Raich, arguing specifically that the federal government had authority to seize medical marijuana grown by patients for their own use in a state where it was legal. This again amounted to federal regulation of non-interstate non-commerce.
We hoped Mr. Sessions would follow the lead of fellow conservative Clarence Thomas upon taking the oath as attorney general. In his dissent from the Gonzalez case, Thomas wrote, “If Congress can regulate this under the Commerce Clause, then it can regulate virtually anything—and the Federal Government is no longer one of limited and enumerated powers.”
Instead of recognizing state governments as the only proper and lawful jurisdictions to regulate intrastate sales of marijuana, Sessions utilized these past poor decisions as a rationale to rescind a 2013 memorandum written by former Attorney General James Cole. The Cole Memo directed U.S. District Attorneys not to prosecute marijuana businesses operating in compliance with state laws so long as they also complied with certain conditions such as preventing the diversion of marijuana to minors or the use of marijuana on federal property. That gave needed confidence to legitimate marijuana businesses and their investors until Sessions’ reversal in January.
Since that time, American marijuana businesses have been reeling as investors have fled toward Canada, which is scheduled to end prohibition for good later this year and launch a fully legal nationwide market. Stock prices for publicly traded marijuana companies in Canada have soared. Meanwhile, the few trailblazing American firms that have striven to abide all federal securities laws while also producing marijuana within the guidelines of state licensing structures have seen investors grow weary.
Fortunately, Sen. Cory Gardner (R-CO) took a bold stance to protect his state’s nascent and growing industry. Gardner began blocking all appointments to the Department of Justice until the DOJ recognized that only the State of Colorado has authority to regulate marijuana within Colorado’s boundaries. On Friday, Gardner prevailed. After speaking directly with the president, Gardner told the press, “President Trump has assured me that he will support a federalism-based legislative solution to fix this state’s rights issue once and for all.” The statement was later confirmed by the White House.
Now marijuana entrepreneurs and investors who had been intimidated by Sessions’ overreach can be assured that American cannabis companies are poised to become world leaders in the emerging global industry. The North American legal cannabis market is projected to grow from $9.2 billion in 2017 sales to $47.3 billion by 2027. Not only is prohibition becoming quickly antiquated, but legal marijuana will be among the fastest growing industries over the next few decades. As Pres. Trump and Sen. Gardner work to craft a legislative fix, we believe smart money will start pouring into American marijuana businesses.
This great news was accompanied this week by a reversal of opinions from another prominent public official, as former House Speaker John Boehner told the press his thinking on marijuana has “evolved” and now he is “…convinced de-scheduling the drug is needed so we can do research, help our veterans, and reverse the opioid epidemic ravaging our communities.”
All due respect to Canada, but we believe American firms can and should produce the best, safest marijuana products in the world. As leaders of public marijuana companies in the U.S. operating in compliance with all state requirements as well as federal securities laws, we envision a thriving industry that puts tens of thousands of Americans to work and produces new wealth for generations to come.
We applaud Sen. Gardner for his valiant tenacity and President Trump for recognizing what is clearly intended by the Interstate Commerce Clause to the U.S. Constitution. Our nation is better when each state is free to create its own laws and cater to its unique population. We hope this action makes American cannabis great again and creates new opportunities for Americans to pursue their own happiness.
About the Authors
Brett H. Pojunis @pojunis
Director of Player’s Network, Inc. (Symbol: PNTV) and
CEO of MJ Venture Partners, Inc. (Symbol: MJVP)
Brett is a die-hard Libertarian and served two-terms as Chairman of the Libertarian Party of Nevada, two-terms on the Libertarian National Committee and continues to be a strong advocate for marijuana. He is an entrepreneur in the marijuana industry.
Geoffrey Lawrence @GLawNV
CFO of Player’s Network, Inc. (Symbol: PNTV)
Geoffrey spent more than a decade in free-market think tanks where he championed the legalization of capitalism in general, including marijuana. Geoffrey last served as senior appointee to the Nevada State Controller’s Office after spearheading Republican efforts in the Nevada Legislature.
Geoffrey is also the host of Geoff’s Sessions, a weekly cannabis-themed news show on WeedTV.