This election season is a drag, isn’t it? Maybe you’re disgusted with the political circus. If so, you’re not alone. Surveys show widespread disaffection among Americans due to the sharply divisive (and increasingly asinine) 2024 U.S. presidential race.

However, if you’re a marijuana investor, you can’t afford to ignore political, legal and regulatory developments in the industry. Ignorance of cannabis politics could cost you.

Pot and politics are closely intertwined, more so than in most sectors. That’s largely because marijuana remains illegal at the federal level, whereas the states are increasingly enacting a patchwork of legalization laws and regulations. For example, if you’re invested in a marijuana company with a heavy emphasis on a certain state, any crackdown on pot by that state would clobber your stock.

To stay on top of marijuana investing trends, you need to closely follow weed-related news on the federal and state levels. Below are snapshots of the latest and most salient developments.

Federal

U.S. Sen. Gary Peters (D-MI) filed a bill to protect people from being denied federal employment or security clearances over past marijuana use. It’s called the Dismantling Outdated Obstacles and Barriers to Individual Employment (DOOBIE) Act.

The introduction of the DOOBIE Act by Sen. Gary Peters marks a significant step toward rectifying outdated policies that stigmatize past marijuana use. This bill aims to dismantle barriers that prevent individuals from obtaining federal employment and security clearances, which can significantly impact career opportunities and economic mobility.

By addressing this issue, the DOOBIE Act aligns with broader efforts to decriminalize marijuana and promote social equity, recognizing that many individuals have been unfairly penalized for behaviors that are increasingly being legalized across the country.

This legislation could lead to more inclusive hiring practices, benefiting not only those directly affected but also fostering a more diverse and equitable workforce within federal agencies.

Federal regulators are cracking down on cannabis fraud. The U.S. Food and Drug Administration and Federal Trade Commission recently sent warning letters to companies that allegedly sold delta-8 THC products “in packaging deceptively similar to many foods children eat such as Froot Loops and Chips Ahoy! chocolate chip cookies.”

The FDA and FTC’s action against companies selling delta-8 THC products in misleading packaging underscores the importance of consumer safety and regulatory oversight in the cannabis industry. These products, designed to resemble popular children’s snacks, pose significant risks of accidental ingestion, particularly among children.

By targeting deceptive marketing practices, these agencies are reinforcing the need for responsible branding and clear labeling in the cannabis market. This move highlights the ongoing challenges of ensuring product safety and protecting vulnerable populations, while also emphasizing the critical role of regulatory bodies in maintaining public trust and upholding industry standards.

The National Conference of Weights and Measures will vote this week on adding new provisions on acceptable moisture loss in marijuana and hemp plant material to a federal handbook on packaged goods.

This forthcoming vote represents a crucial development for the standardization of cannabis packaging. Accurate measurement of moisture content is vital for maintaining product quality, potency, and consumer satisfaction.

This move towards standardized guidelines will help ensure consistency across the industry, benefiting both producers and consumers by reducing variability in product weight and potency due to moisture loss. These standards will aid regulatory compliance and enhance market transparency, fostering a more reliable and trustworthy cannabis marketplace.

National Institute on Drug Abuse Director Nora Volkow recently said that “moving away from criminalization of substance use disorders toward a public-health approach would remove a key structural practice that perpetuates inequalities” and argued that it is “inaccurate and dangerous” to claim that “simply stopping someone from taking drugs while in jail or prison is an effective approach to treatment.”

Nora Volkow’s advocacy for a public-health approach to substance use disorders marks a pivotal shift in the national dialogue on drug policy. Moving away from criminalization and towards treatment and rehabilitation addresses the root causes of addiction and reduces the systemic inequalities perpetuated by punitive measures.

This perspective aligns with evolving views on drug use, emphasizing harm reduction and evidence-based treatment over incarceration. By promoting this approach, policymakers can better address the public health crisis of addiction, support recovery, and decrease the social and economic costs associated with criminalization, ultimately leading to more equitable and effective outcomes.

A new scientific review says that “psilocybin mushrooms may have intervened as a factor in the evolution of human consciousness.” The review’s authors propose that the psychedelic “could have contributed to the improvement in visual abilities and the reproductive success of” of pre-human hominids that ingested it.

The scientific review suggesting that psilocybin mushrooms may have played a role in the evolution of human consciousness offers a fascinating perspective on the potential influence of psychedelics on human development.

This hypothesis posits that the consumption of psilocybin could have enhanced visual acuity and cognitive functions, contributing to the survival and reproductive success of early hominids. Such findings could transform our understanding of human evolution and the role of natural substances in shaping cognitive abilities.

More to the point for investors, this research informs contemporary discussions on the therapeutic use of psychedelics, underscoring their mental and physical benefits.

States

California Gov. Gavin Newsom (D) recently touted enforcement actions against illicit marijuana grow sites.

Gov. Newsom’s emphasis on cracking down on illicit marijuana grow sites highlights the continuing challenges of regulating the cannabis market in California. Illicit pot agriculture not only undermines the legal market by avoiding taxes and regulations but also poses environmental risks due to unregulated pesticide use and water theft.

By promoting enforcement actions, Newsom aims to strengthen the legal cannabis industry, ensuring a level playing field for licensed operators while protecting public health and the environment. This approach is critical for sustaining the economic viability and legitimacy of California’s cannabis market, which remains one of the largest in the world.

North Carolina’s Supreme Court is being asked to take up a case about police using the smell of marijuana as justification for searches.

The NC Supreme Court’s consideration of a case involving the use of marijuana odor as grounds for police searches could set a significant legal precedent. The outcome may impact law enforcement practices and the rights of individuals in the state.

If the court rules against using smell alone as probable cause, it could lead to changes in how police conduct searches and seizures, potentially reducing instances of racial profiling and unjustified stops. This case is pivotal for civil liberties and the evolving legal landscape surrounding marijuana enforcement.

Pennsylvania medical cannabis dispensaries were inadvertently left out of a provision providing 280E tax relief to the industry in a bill signed into law by Gov. Josh Shapiro (D). It’s unclear whether the clerical error can be fixed without passing additional legislation.

The oversight in Pennsylvania’s new law excluding medical cannabis dispensaries from 280E tax relief highlights the intricate nature of cannabis legislation and the potential for significant financial implications due to legislative errors.

The 280E tax provision, which prevents businesses involved in drug trafficking from deducting expenses, has long been a contentious issue for legal cannabis businesses.

Correcting this error is crucial for ensuring that medical cannabis dispensaries are not unfairly burdened with excessive tax liabilities, which can hinder their operations and financial stability.

Vermont regulators recently published guidance about cannabis packaging container sanitation.

Vermont’s new guidance reflects a proactive approach to ensuring product safety and consumer protection. By establishing clear standards for sanitation, the state’s regulators aim to prevent contamination and maintain the integrity of cannabis products.

This initiative is particularly important in an industry where quality and safety are paramount. For consumers, these guidelines provide assurance that the products they purchase meet stringent health standards. For producers, adhering to these regulations can enhance credibility and market trust, ultimately contributing to the overall growth and sustainability of the cannabis industry in Vermont and elsewhere.

Read This Article: Pot Stocks on the Brink of Election Year Boom

A Note from John Persinos: Why are certain cannabis stocks already jumping +1,000%? It has to do with seasonality…specifically, the U.S. presidential election.

It happens every four years. No matter who’s running for office. During the previous presidential election cycle, you had a chance to grab 569%… 1,020%… 2,426% and higher. Now it’s happening again, and you’ve no time to lose.

I’m the editorial director of Investing Daily. I’m also the editor-in-chief of our premium trading service Marijuana Profit Alert.

To find the best cannabis stocks, you need to conduct due diligence.

The good news is, I’ve done the homework for you. For Marijuana Profit Alert, I’ve put together a portfolio of the best-of-breed marijuana equities. These holdings are poised to soar during this political season. If you’re fortunate enough to own these companies, you’ll reap a windfall.

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