Even though there’s increasing optimism of the MORE Act passing which would decriminalize cannabis at the federal level. Most likely the bill would be blocked by Senate Republicans. Further, this item doesn’t seem to be a priority for President Biden. Given this uncertainty, the marijuana market is susceptible to extreme volatility in the upcoming months. So, the fundamentally weak and overvalued companies in the cannabis space – Curaleaf Holdings (OTC:CURLF), Innovative Industrial Properties (NYSE:IIPR), and TerrAscend (TRSSF) – should be avoided.The prospects for the cannabis industry have never looked better in the United States. With 17 states, two territories, and Washington, D.C., have already legalized recreational cannabis and 36 states and two territories allowing medical marijuana, this year could certainly be revolutionary for the industry. And now, with the reintroduction of the MORE Act by Judiciary Committee chairman Jerry Nadler, which proposes decriminalization of cannabis on a Federal level, the tension between the state and federal level regarding the legalization of cannabis is expected to end soon.
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However, even though the democratically-controlled House is likely to pass the bill, the Senate is expected to be an obstacle. Republicans have previously stepped back in voting in favor of any marijuana reform measures. This disagreement in the chamber could cause a hindrance in the federal legalization process.