The SAFE Act would disallow the federal government from punishing banks from offering services to marijuana-related businesses where it is legal, while the STATES Act would effectively eliminate federal involvement altogether in any of the states’ marijuana laws. Since the latter is more all-encompassing, it would likely come under the most scrutiny.
Even if the Democrats do take control of the House and subsequently, ownership of the marijuana proposals, the political mudslinging from the Republicans towards those “weed-loving Democrats” could ensue, possibly causing further delays in legislation passing. Furthermore, a divided Congress would metaphorically cause gridlock that could rival any California interstate at 5:00 p.m. PT.
“The Republicans will want something in return to get it through,” said Curaleaf Executive Chairman Boris Jordan. “And you know the minute anyone wants something in return, things take a lot longer.”
Jeff Sessions Resignation
Attorney General Jeff Sessions has been an ardent opponent of marijuana legislation, going as far as calling cannabis a “very real danger” and that individuals of the highest ethics “don’t smoke marijuana.” Ever since Sessions recused himself from the investigation of possible collusion between Russia and U.S. President Donald Trump’s 2016 campaign, he’s caught the ire of the president.
As such, the political scuttlebutt is that Sessions will probably step down as early as the beginning of next year.
“Jeff probably will step down,” Senator Lindsey Graham told conservative talk-radio host Hugh Hewitt.
Supporters of marijuana legislation could rejoice since Sessions’ resignation will mean one less obstacle to contend with. Even if Sessions doesn’t resign, President Trump could issue an “Apprentice”-like firing of the Attorney General, which could take place before the end of this year.
“Allies of Sessions and some in the Justice Department believe the attorney general could be fired in humiliating fashion in the days immediately following Tuesday’s elections,” noted a Washington Post report. “The White House has already begun considering replacements, while Trump aides and confidants have cautioned the president he would face a backlash if he fired either of the top two Justice officials, particularly before the midterms.”
A rally in MJ won’t necessarily need all of these proverbial dominoes to fall, but any one of these factors falling in its favor could see enthused investors piling into the only marijuana-related ETF. As of 12:30 p.m. ET, MJ is up 4.43% and up 15.3% the last five days.
Related: Marijuana ETF Jumps After Canopy Growth Buys U.S. Hemp Researcher
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