New Jersey lawmakers disappointed US pot stocks Monday when it called off a vote on the bill that would make recreational cannabis legal. Despite Governor Phil Murphy's efforts to campaign for legalization, the decision came after Democratic leaders came up at least one vote short in support of the bill.
New Jersey state, which runs a medical marijuana program, would have become the 11th state to legalize recreational cannabis had the bill passed. Another vote is unlikely to be scheduled prior to the November elections, meaning legalization could get pushed back to 2020 in both New Jersey and New York.
The bill was said to be the most progressive marijuana legislation presented in the entire country and called for a tax of $42 per ounce, setting up a five-member regulator commission and expediting expungements to people with marijuana-related offenses.
US Pot Stocks See Bright Spot in CBD Distribution
Despite the blow this decision had to prospects of legal recreational marijuana, US pot stocks developing and marketing CBD products are unfazed by the news. Last week, Curaleaf Holdings (CSE:CURA) (OTC:CURLF) announced a deal with CVS Health Corp (NYSE:CVS) that will see CURA's CBD-infused products sold in over 800 CVS health stores across the country.
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Tilray Inc (NASDAQ:TLRY) is also looking to grow its stake in the US hemp market with its acquisition of Hemp Hearts-creator Manitoba Harvest, which already sells its products on the shelves of major US retailers like Wal-Mart, Costco, and Whole Foods in both Canada and the US.
SAFE Act Could Boost US Pot Stocks
Another vote on Tuesday could also impact US pot stocks in a favorable way. The US House Financial Services Committee will vote on the SAFE Act, which would permit commercial banks to offer services to cannabis companies that are in compliance with state law.
Analysts say the measure will likely pass despite questions raised by Republicans regarding safety measures to prevent money laundering. The SAFE Act could get revenue from the cannabis industry off the street and into the bank and could provide cannabis companies with funding.
What do you think about New Jersey's legalization being pushed back?
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