New Cannabis Ventures‘ Alan Brochstein is generally optimistic about the industry’s future and that of the biggest companies, but that’s not the same thing as expecting federal legalization:

The prospects for federal legalization are low in our view. Instead, we hope that several policy changes that would improve the status quo, such as reforms that make it easier for companies to process transactions with traditional credit cards, access banks for mortgages or loans or list on higher exchanges, play out in the near-term. We think this is more likely with a Democrat-controlled Senate. We warn that legalization, should that play out against our expectations, could offer up some curve balls as well. For example, Joe Biden’s platform calls for federal legalization of medical cannabis, without detailing exactly what that might mean. We fear it could mean FDA involvement (think CBD) and could also change distribution from dispensaries to pharmacies potentially. We don’t anticipate Biden’s vision to play out. Instead, we believe any initial move by Congress would be to assert the rights of states to oversee their own programs and legislation similar to SAFE Banking, hopefully enhanced, that would make it safer and saner to conduct business. We would also expect to see barriers to research removed.

Quick Hit

  1. After lots of red tape, AdvisorShares is preparing to launch ????the first exchange-traded fund focused on the U.S. cannabis industry.
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