04/20 — the infamous day to light one up — and now to buy stocks and some cryptocurrencies.
The focus for many today is on Dogecoin as holders of the meme cryptocurrency coin the name “Doge Day” with a hefty goal of pushing its value up to $1. A quick look at the hashtag #DogeDay on Twitter will find you some pretty good memes to scroll through if you choose to partake in other traditions of the day.
If you’ve had your eyes on any weed stocks, today might be the day to buy. Leaders in the industry like Canopy Growth (CGC), Cronos (CRON), Aphria (APHA), and Tilray (TLRY) are on a bit of a sale with all down more than 4% at writing.
That drop came despite the House taking a step forward to make it easier to buy and sell weed. The Lower Chamber passed the SAFE Banking Act in a 321 to 101 vote Monday night. Tired of having to hit the ATM at the dispensary when you forget they can’t take your debit card? Well, this bill might just help you out. The legislation would give cannabis companies access to the federally insured banking system — allowing debit and credit cards to be used to pay for weed. Sales of the drug would also no longer be subject to anti-money-laundering laws. It’s unclear how the bill might fare in the tight Senate.
Every reform of laws at the federal level is one step closer to federal legalization. And the U.S. might be facing some pressure from its neighbors soon. Mexico is on track to legalize weed this year while Canada already allows recreational use of the drug. Senate Majority Leader Chuck Schumer has said he’ll introduce a legalization bill “soon”. Speaking on the Senate floor today Schumer said, “Hopefully, the next time this unofficial holiday, 4/20, rolls around, our country will have made progress in addressing the massive overcriminalization of marijuana in a meaningful and comprehensive way… I believe the time has come to end the federal prohibition on marijuana in this country.”Although President Biden still says he’s opposed, he might be swayed. Former Colorado Gov. John Hickenlooper and Washington State Gov. Jay Inslee used to be against it too — look at them now.
Today’s 04/20 looks a bit different than its origination in the 1970s, with weed no longer having the same stigma it did back then. If you live in California, Colorado, Washington, Alaska, Oregon, Washington, D.C., Virginia, Maine, Massachusetts, Nevada, Michigan, Vermont, Guam, Illinois, Arizona, Montana, South Dakota, New Jersey, or New York — light up freely.
New Mexico became the latest to approve the drug earlier this month, but that law doesn’t go into effect until June 29. Connecticut, Delaware, Minnesota, Rhode Island, Wisconsin and Maryland look like they’re up next. And if you have a medical card, you can toke-up worry-free in 33 states.
Weed is a lucrative business for states who’ve taken the plunge into legalization. An estimate by the Tax Foundation shows California, for example, has the potential to rake in up to $1 billion in taxes from marijuana sales. That money is being put to good use in the community funding public health, environmental and public safety projects in the state.
COVID might be just what the government needs to get on board. The pandemic has driven the federal deficit way up as Congress cranked out stimulus money. What might help that deficit? Tax revenue from weed sales.