MarketWatch reports Jeff Sessions has delivered a blow to the marijuana industry’s ability to raise capital.
Thursday’s move by U.S. Attorney General Jeff Sessions and his Justice Department to rescind an Obama-era policy used as a protection for states that have legalized marijuana could be a major blow.
“This should not come as a surprise,” said Rafael Lemaitre, former associate director for public affairs for the Drug Policy Office under President Obama.
“We don’t know how this might play out legally,” he said. “But this will create a significant chilling effect on investors who had hoped to cash in on a new ‘green rush.’ Before Trump, you would have to just be risk [tolerant] to put money behind the marijuana industry; now you’d have to be downright crazy. Despite public polling showing its popularity, the cards are stacked against a successful long-term business model here.”
Battle of Public Opinion is Over
What a hoot.
“It just shows how out of touch Sessions is,” said Morgan Fox, the director of communications for the Marijuana Policy Project. “He’s out of step with his own advisers, he’s out of step with the president—who has said it’s a states’ rights issue—and he’s out of step with the American people.
Bingo.
Some even think Sessions will speed up the legalization process.
We said this Thursday. And Friday. And we’ll say it again now.
Jeff Sessions just gave cannabis bulls the best gift possible–the last shoe.
Did Jeff Sessions Just Increase the Odds Congress Will Make Marijuana Legal? https://t.co/iZXm3DYFr7 via @politicomag
— Todd Harrison (@todd_harrison) January 6, 2018
It will: the plot twist for cannabis is production will ramp up, prices will decline and the opportunities will sequence from input (growers) to output (biopharma, hemp, cosmetics, consumer goods).
Cultivation is phase one; multi-year secular bull market#cannabinoid #wellness https://t.co/U5JoHR2roX
— Todd Harrison (@todd_harrison) January 6, 2018
Because of @jeffsessions actions, I’m joining the “Respect State Marijuana Laws” bill. I believe in States’ Rights & I’ve seen how cannabis derived medicines can stop seizures in a child, help a veteran cope with pain, or provide relief to a senior with glaucoma. #IA01
— Rod Blum (@RepRodBlum) January 5, 2018
New federal pot policy unlikely to affect Illinois medical marijuana; legalization push continues https://t.co/98b9VFTeRl
— Todd Harrison (@todd_harrison) January 6, 2018
What Republicans Say
Four Republican Senators Blasted Sessions.
- Lisa Murkowski, Alaska: “Over the past year I repeatedly discouraged Attorney General Sessions from taking this action and asked that he work with the states and Congress if he feels changes are necessary. Today’s announcement is disruptive to state regulatory regimes and regrettable.”
- Cory Gardner, Colorado: “This reported action directly contradicts what Attorney General Sessions told me prior to his confirmation. With no prior notice to Congress, the Justice Department has trampled on the will of the voters in CO and other states. I am prepared to take all steps necessary, including holding DOJ nominees, until the Attorney General lives up to the commitment he made to me prior to his confirmation.”
- Dean Heller, Nevada: “Knowing Attorney General Sessions’ deference to states’ rights, I strongly encourage the DOJ to meet with Governor Sandoval and Attorney General Laxalt to discuss the implications of changes to federal marijuana enforcement policy. I also urge the DOJ to work with the congressional delegations from states like Nevada that have legalized marijuana as they review and navigate the new policy.”
- Rand Paul, Kentucky: “I continue to believe that this is a states’ rights issue, and the federal government has better things to focus on.”
There is strong bipartisan support in Congress to legalize marijuana. Sessions did not deliver a blow to anything other than to his own head. If anything, his Neanderthal statement will speed up the legalization.
Mike “Mish” Shedlock
As long as there is no motive to change the law, Congress will just let it ride and avoid political fallout.
Perhaps his goal is to speed up the legalization process, just as Trumps rescindment of DACA is to push Congress to make the policy a matter of law and not executive order. Anything the President does to pull us back from Obama’s Emperor stance is OK by me.
Federal regulators allow Oxicontin to be marketed for years as a safe treatment option for pain relief. Result = out of control Heroin epidemic with wide ranging negative effects. Colorado legalizes marijuana = no bad effects on society. Indeed the use of marijuana in place of Oxicontin would prevent far more problems.
They are not “nervous on mueller” at all. The mueller find something, anything campaign is a joke on mueller. As for Sessions, he is an out-of-touch neanderthal. Trump will replace him.
The administrations is beyond a parody at this point, and I thought Obama’s administrations was a joke. It’s become more apparent everyday the elites are losing all credibility.
Of course this will speed up legislation to legalize pot. Wasn’t that the whole point? The situation for the last year or two has been stupid, and this will force it to be addressed.
More fake news regarding pot.