2024: A Defining Year for Cannabis
Florida’s Weed Referendum: A Potential Game Changer for the Cannabis Industry
As the cannabis industry continues to flourish, developments in legislative reforms and market trends paint an interesting future for 2024. With various predictions and legislative pushes in the limelight, the industry stands on the cusp of significant transformation.
Rescheduling: A Tax Reform Catalyst
The rescheduling odyssey initiated by the Biden administration could see marijuana moved to Schedule III of the Controlled Substances Act (CSA) in 2024. This move holds the promise of tax reform, which will impact Section 280E of the federal tax code, currently preventing cannabis businesses from deducting many normal business expenses on federal tax returns.
Congressional Reforms: A Question of ‘When’ Not ‘If’
While the congressional passage of marijuana banking reform hangs in the balance, the future may see an uplisting of cannabis stocks to major exchanges and more investment in a bear market. The spotlight also turns to state-level restrictions and the possibility of the federal Farm Bill addressing the issue of hemp-derived competitors.
Florida and Pennsylvania: The Next Dominoes?
Following the pattern of states legalizing adult-use marijuana, Florida and Pennsylvania are poised to be the next entrants. Florida’s proposed constitutional amendment may face a high threshold for approval, and Pennsylvania’s recent medical marijuana industry expansion hints at a growing openness for legalization.
Federal-Level Progress: Banking Reform and More
The political landscape indicates only a slim chance for federal banking reform to pass in the 118th Congress. However, new developments not yet foreseen could still push Congress closer to action on this front.
Presidential Politics: Marijuana Reform Takes Center Stage
As the 2024 presidential campaign season heats up, marijuana reform may emerge as a key issue, potentially impacting voter turnout and candidate platforms.
The Illicit Market and Social Equity Challenges
The industry also grapples with the flourishing illicit market and the promise of an inclusive legal marijuana industry. Regulatory and legislative actions in response to these challenges will be crucial.
