Did the Biden Administration Just Give These 3 Cannabis Stocks a Golden Ticket?
Is federal marijuana legalization around the corner? The jury's still out, but things are looking more favorable than ever. Earlier this month, the Biden Administration issued a statement instructing the Attorney General to review the scheduling of cannabis, igniting a flurry of speculation about the future of the industry in the U.S.
But, beyond that statement, nothing has actually changed for cannabis companies, and it's uncertain what the Attorney General will opt to do after the review. It's obvious that a ruling in favor of full legalization would cause cannabis stocks to soar, but what's less obvious is that even partial steps toward legalization would still be a golden ticket for the industry -- and it wouldn't affect all of the players equally. Let's explore a couple of scenarios to see which businesses might benefit the most.
Marijuana is currently classified as a Schedule 1 drug, much like heroin, which means that enterprises growing or selling it aren't eligible for tax deductions. Schedule 1 restrictions also make it very difficult to do scientific or industrial research, as any projects are required to undergo a lengthy justification process and face significant institutional scrutiny. It seems pretty unlikely that the administration would be satisfied with the Attorney General if he ruled to maintain the status quo, but it's a possibility nonetheless, and it'd probably tank marijuana stocks when announced.
Source Fool.com
