Many U.S. States have legalized marijuana in one form or another. Even a conservative State like Utah has made medical marijuana legal, and more are jumping on board. The latest State to express interest in legalizing cannabis: South Carolina.
On Tuesday, a bill was unveiled would permit cannabis to be used in the State for medical purposes and it would enable doctors to prescribe it to patients. The Compassionate Care Act, is designed to allow patients to have access to cannabis to treat various chronic conditions, including epilepsy and cancer.
However, like Utah, South Carolina is a fairly conservative State and this is not likely going to lead to recreational legalization anytime soon.
Conservative bill has been in the works for years
Senator Tom Davis, one of the sponsors of the bill, stated that “This is South Carolina, not California or Colorado, and what the vast majority of people in our state want is a socially conservative medical marijuana law, one that provides medical patients truly in need with relief but draws a bright line against recreational use by imposing strict penalties.”
The bill has taken a long time to get here. Senator Davis pointed out that “It’s taken four or five years to get to this point.” Polls show that the vast majority of residents in South Carolina are in favor of cannabis legalization. Attitudes across the country have been changing, but it hasn’t been overnight.
Cannabis is already legal in many parts of the world
Medical marijuana has been making progress around the globe as many countries have legalized some form of cannabis. At this point, it’s almost an inevitability that the vast majority of places around the world will permit it sooner or later. Even South Korea and Thailand, two strict Asian countries, have recently announced they will permit medicinal use of cannabis.
We’re seeing some of the most conservative places around the world legalize cannabidiol (CBD). From an investor’s point of view, it tells me that medical marijuana will have a lot more potential growth in the near future than recreational pot will.
With Canada and Uruguay being the only two countries to have legalized recreational use, the market for the high-inducing tetrahydrocannabinol (THC) is not likely to be as significant. While there is speculation that the U.S. will likely legalize all forms of marijuana sometime soon, there’s certainly no guarantee that will happen. Lots of people are still concerned over the psychoactive risks that THC possesses and it’s not a slam dunk that just because 10 States have legalized it that the country will follow suit.
Like any adult-use substance, marijuana will require lots of regulation and resources to combat it. Canada is a good case study for the rest of the world but it might take years, perhaps a decade, before we know how well that model works.
In the meantime, investors would be wise to focus on stocks that are heavily focused on CBD. Medicinal marijuana could prove to have much more potential than recreational pot. Not only does it possess less risk, but its health benefits make it an easier sell.