Get Ready for a Pot-Friendly DOJ
Last weekend, I was watching a new documentary on HBOMax called “Jimmy Carter: Rock & Roll President” and I was taken aback when former President Carter revealed that his son Chip and Willie Nelson once smoked marijuana together on the roof of the White House.
I doubt we’ll experience similar antics from the Biden family. But about one thing, there’s little doubt: the Biden administration will prove hugely favorable for marijuana investors. Further evidence of this new political reality arrived Monday in the U.S. Senate.
Attorney General nominee Merrick Garland said during his Senate confirmation hearing Monday that interfering with state marijuana laws is not “a useful use of limited resources” and that marijuana enforcement is the “perfect example” of racial discrimination in the criminal justice system.
Appearing before the Senate Judiciary Committee, U.S. Appeals Court Judge Garland said:
“Here’s a non-violent crime with respect to usage that does not require us to incarcerate people, and we’re incarcerating at significantly different rates of the different communities. That is wrong, and it’s the kind of problem that will then follow a person for the rest of their lives. It will make it impossible to get a job, it will lead to downward economic spiral for their family.”
The Twittersphere was abuzz (pun intended) on Monday regarding Garland’s views on marijuana, as this February 22 tweet attests:
Also at the Senate hearing, Garland broached the idea of deprioritizing enforcement against cannabis possession after being pressed on ensuring racial equity in the justice system.
Garland enjoys wide bipartisan support in the Senate and he is widely expected to be confirmed after a floor vote next week.
A headwind is removed…
When he takes the reins of the Department of Justice (DOJ), Garland is expected to reverse the DOJ’s previous antipathy toward the marijuana industry.
Last year, a DOJ whistleblower testified in Congress that departmental resources were improperly deployed to scrutinize and ultimately hamper marijuana industry mergers.
At a House Judiciary Committee hearing in June 2020, the whistleblower revealed that there wasn’t a justifiable basis for the DOJ probes, which at the time comprised one-third of the Antitrust Division’s cases and caused cannabis companies to submit nearly 6 million documents for agency review. Career staff had recommended against reviewing the transactions but were overruled by political appointees.
Under the Biden regime, the DOJ will no longer be an obstacle to cannabis mergers, which is important for an industry that’s rapidly consolidating. Marijuana equities have been soaring lately, in large part due to healthy mergers and acquisitions (M&As) that have allowed many pot companies to get into leaner and fitter financial shape.
Indeed, a shrewd investment strategy is to pinpoint companies likely to embark in M&A activity and invest in them before the news becomes official, to profit from their future momentum.
Garland’s views, as expressed in his confirmation hearing Monday, reflect the social and legal mainstreaming of marijuana. An increasing number of states have lifted pot restrictions and it’s likely that the federal government will soon do the same.
In Congress, a House-passed bill to legalize pot on the federal level stands an excellent chance of passage this year in the Democratic-controlled Senate. President Biden would likely sign the bill, known as the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act of 2020. Biden’s vice president, Kamala Harris, was the lead sponsor of MORE when she served in the Senate.
There’s also a movement afoot in several states to grant amnesty for those with police records for marijuana busts.
Normalization of marijuana laws equals industry growth. According to marijuana research firm New Frontier Data, the legal cannabis market was worth an estimated $20.1 billion in annual sales in 2020. Annual legal marijuana sales are projected to grow at a five-year compound annual growth rate (CAGR) of 21%, to reach more than $41 billion by 2025.
Looking for the best way to make money from the mainstreaming of marijuana? A small group of everyday Americans are earning up to $55,362 a year from one company’s unique marijuana profit-sharing “program.”
As Washington gets increasingly friendly toward marijuana, this company’s prospects are on the fast track for growth. To join the profitable action, click here.
John Persinos is the editorial director of Investing Daily. He also writes the twice-weekly e-letter Marijuana Investing Daily. Send your questions or comments to email@example.com. To subscribe to John’s video channel, follow this link.