TD Ameritrade Urges Their Clients to be Cautious About Legal Pot Stocks

Canada’s federal legalization of cannabis and the continued expansion of legal use in the United States have led to an explosion of interest in marijuana investments, this year especially. But the U.S. brokerage firm TD Ameritrade is warning their clients and investors in general to be cautious about legal cannabis stocks. In a video posted on the firm’s YouTube channel in late September, TD Ameritrade highlights the risks and acknowledges the seductive appeal of investing in marijuana. Many who’ve observed the cannabis market’s recent volatility feel TD Ameritrade is offering sound advice. Others say the bullish trends of the market are real and that TD Ameritrade is playing it too safe.

TD Ameritrade Video Warns Investors Against Straying Into The “Wild West” of Cannabis Stocks

Cannabis is rapidly moving from the black market to the stock market. But one investment firm is warning, not so fast. TD Ameritrade is urging investors to be cautious and do their homework before buying stock in cannabis companies. Their reasoning is simple: the market still carries significant risks.

The firm’s video begins with a brief history of legalization in North America. It then presents viewers with an image of the North American Marijuana Index which tracks cannabis companies’ stock prices and market capitalization, showing how the value of the index has nearly tripled since its 2015 inception. In short, the setup makes clear why so many investors are attracted to the cannabis industry. Its potential for growth is undeniable.

Then, the other shoe falls. The video says everything that’s exciting about the cannabis industry also suggests it’s a market bubble. It draws parallels between the cryptocurrency frenzy of 2017, the housing market bubble of 2008 and even the dot.com bubble of the early aughts. The bottom line, TD Ameritrade’s video seems to claim, is that the excitement around the industry is overlooking its uncertain regulatory future. And that leads to extreme volatility and in turn, high risk for investors.

Can TD Ameritrade’s Words of Warning Dissuade Young Investors

Exhibit A in TD Ameritrade’s case against cannabis investing is September’s rollercoaster ride for the Canadian marijuana company Tilray. Tilray was the first Canadian cannabis producer to raise capital through an IPO on the NASDAQ. So when trading went public in July at about $17 per share, Tilray’s stock price shot up to $300 per share by mid-September. But almost as quickly, Tilray gave up those gains. The stock was so volatile, in fact, that the U.S. Securities and Exchange Commission (SEC) halted Tilray’s trading five times in a single day.

The SEC also issued an investor alert on marijuana investments and fraud in early September. And these, TD Ameritrade says, are signs that it may be prudent to hold off on significant cannabis investments until the industry matures. Yet it’s not clear whether investors, especially young ones, will heed the firm’s warnings.

Cannabis stocks are attracting young investors in droves. And it’s not only because legalization a generation-defining issue. Fee-free trading apps like Robinhood and TD Ameritrade’s own platform have made it easier than ever for young investors to buy cannabis stocks online. And they aren’t wrong, according to famous short seller Andrew Left. Left acknowledges that it’s hard to tell the difference between real players in the marijuana sector and fly-by-night scammers. But at the same time, he’s convinced the growth is real and here to stay.

So before you invest, make sure to do your homework. Research any company you’re considering investing in. Look up reports and SEC filings—anything you can find. There are also red flags that should dissuade you from investing. These include SEC suspensions, hyped up press releases and company insiders holding large amounts of stock.

Marijuana in the Midterms

Marijuana legalization is going to be a lead issue in the 2018 elections. Advocating for an end to our decades-long failed prohibition is not only good policy, but good politics. Regulating the adult use of marijuana is currently supported by a majority of Americans from all political persuasions, and any candidate for local, state or federal office would be wise to advocate for the will of the people and make ending prohibition a core plank in their election platform. Supporting sensible reform to our nation’s marijuana laws is not just overwhelmingly popular, it is the economic, scientific and moral thing to do.

  With nine states having passed adult-use marijuana regulations, and 30 states authorizing medical-marijuana access, issues surrounding cannabis policy have taken center stage in local, state and federal elections. Over 90 percent of Americans support medical-marijuana access, and 60 percent support legalizing and regulating marijuana in a manner like alcohol.

If you look back at just the past year, it is clear that if we want the implementation of marijuana-reform laws to succeed, we need to begin voting out officials who are permanently afflicted with reefer madness and replace them with forward-thinking individuals who will fight for rational marijuana policies at all levels of government.

With a majority of states now engaging in activities that are in conflict with federal prohibition, it is absurd that House Judiciary Chairman Bob Goodlatte (R-VA), House Rules Chairman Pete Sessions (R-TX) and Senate Judiciary Chairman Charles Grassley (R-IA) refuse to even hold a hearing on this issue.

However, it is not just members of Congress who deserve our attention. With ongoing efforts to delay the rollout of legalization and regulation of marijuana in Maine and Massachusetts, mostly at the behest of those states’ governors, we need to push 2018 gubernatorial candidates to take proactive and positive stances on marijuana policy. If you look to New Jersey as an example, which recently saw the exit of anti-drug zealot Chris Christie and the election of pro-legalization Phil Murphy, you can see the positive impact of having a reform-friendly governor on the tenor of the debate. Already, the state is moving to expand and reinforce its long-suffering medical-marijuana program, and Murphy’s election catapulted the topic of full legalization to the top of this year’s legislative-priorities list.

There are a number of races this year that are worth watching from a marijuana-reform perspective. In Texas, the opportunity to replace Senator Ted Cruz with pro-legalization Beto O’Rourke would add a new, outspoken supporter to the US Senate. In California, there is an outside chance that Democratic Senator Diane Feinstein, who long opposed our efforts despite the vast majority of her party now being in support of reform, could be ousted by current California Senate President Kevin de León, who has a far better record on cannabis issues. Also of incredible importance are the many gubernatorial elections being held, particularly in Maine, where the current governor (and ardent prohibitionist), Paul LePage, will be term-limited out of office. Governor LePage has spent every day since the 2016 election working to slow down or outright prevent the implementation of his state’s marijuana-legalization initiative. We need to ensure that whoever takes the position after him is progressive and aggressive in implementing legalization.

Even on the local level, these elections have a huge impact. In Easton, PA, an effort to decriminalize marijuana failed in the past month due to just one vote, and counties in states that have legalization are often empowered to “opt-out” of allowing retail marijuana outlets in their jurisdictions. Local politics, in many ways, matters just as much if not more than what is happening at the federal level, and reform supporters need to be just as diligent in lobbying their local officials and candidates as those at the top of the ballot.

With the clock ticking down to Election Day, get informed, be sure you are registered, and go out and “smoke the vote” this November.

Wall Street Analyst Estimates US Cannabis Market Will Reach $47 Billion

For years, “$20 billion by 2020” was an oft-heard refrain from market analysts who saw a bright and prosperous future for the legal cannabis industry. Now, with that horizon fast-approaching, analysts are setting their sights on what the next decade has in store. And one analyst, RBC Capital Markets’ Nik Modi, is seeing green.

Analyst Says Concentrates and Edibles Could Propel Sales To $47 Billion Annually

RBC Capital Markets, an investment bank that’s part of Royal Bank of Canada, issued a memo to clients outlining the rapid growth of the U.S. marijuana sector. The memo, authored by Nik Modi, shows how cannabis sales in the U.S. are gaining ground on beer and wine sales.

Projecting a compound annual growth rate (CAGR) of 17 percent, Modi estimates that the legal cannabis category could reach $47 billion in sales annually in the United States within the next decade, according to Business Insider.

Yet the cannabis market in the U.S. faces uncertainties that Canada does not. Regulatory environments are constantly and rapidly shifting as states implement legalization and adopt different approaches to dealing with federal prohibition. Investing in the industry still carries risk.

But RBC Capital Markets analyst Nik Modi brushed off concerns about the unpredictability of legal cannabis in the U.S.. Instead, he drew clients’ attention to a shift in consumer trends that is already having a major impact on domestic retail markets.

Data from BDS Analytics, included in Modi’s memo, shows that the margin on cannabis flower has steadily declined since the beginning of recreational sales in Colorado in 2012. That’s indicative of a larger national move away from flower and toward cannabis edibles and concentrates.

In Colorado, flower made up 70 percent of legal sales when shops opened in 2014. By the end of Q4 2017, flower accounted for just 46 percent of total sales. Picking up the slack were edibles and concentrates. Both are surging in popularity everywhere, and Modi thinks those forms of cannabis can propel total sales beyond $47 billion a year by 2027.

Including Illegal Cannabis Sales Drastically Shifts Financial Forecasts

Another eye-catching aspect of Modi’s analysis is another BDS Analytics chart showing the estimated U.S cannabis market size. The chart compares cannabis sales to spirits, wine, cigarettes, and beer. From spirits at $58 billion to beer $117 billion, all four categories best cannabis at $50 billion. But interestingly, the chart includes total legal and illegal cannabis sales to arrive at the $50 billion figure. It’s unclear what proportion of that amount is made up by illegal sales.

Other cannabis market analysts say that illegal sales still account for the majority of total marijuana purchases in the U.S. But as legalization continues to channel consumers into the legal market, illegal sales are slowly declining.

While access to legal cannabis expands nationwide, the size of the illegal market remains difficult to measure. So does predicting how much of it will move aboveboard in the coming years.

RBC Capital Analyst Praises Big Investment in Canadian Cannabis

The letter RBC Capital Markets sent to clients also lauded Constellation Brands’ recent $4 billion investment in one of Canada’s largest medical cannabis producer Canopy Growth Corp. Constellation Brands is the firm behind the popular beverage companies Modelo, Corona and Svedka. The company has been moving incrementally into the Canadian cannabis market, upping its stake each time. Nik Modi says he’d like to see more companies make similar moves in the cannabis space.

California Lawmakers Pass Bill to Overturn Pre-Legalization Marijuana Convictions

California lawmakers have passed a bill directing prosecutors throughout the state to overturn convictions for acts that are no longer illegal under the state’s Prop 64 cannabis legalization initiative. The bill would also reduce many felony convictions for marijuana-related crimes to misdemeanors.

The measure, Assembly Bill 1793, was passed by the California Senate Wednesday with a bipartisan vote of 22-8 after being approved by the California State Assembly on May 31 by a vote of 43-28.

If the bill is signed into law by Gov. Jerry Brown, it will direct the state Department of Justice to identify cases from between 1975 and 2016 that are eligible to be overturned or reduced by July 31, 2019, and notify the appropriate district attorney for action. Prosecutors will then have until July 1, 2020 to decide if they want to challenge the reduction or elimination of any of those convictions.

Prop 64, passed by voters in 2016, legalized the recreational use and sale of cannabis and eliminated many marijuana-related crimes. That decriminalization also applied retroactively, making many eligible for a reduction or elimination of past cannabis convictions. Those with convictions for non-violent felonies including possession or distribution of less than one ounce of cannabis are eligible for reduction to misdemeanors. Prosecutors have the right to challenge relief based on the criminal history of affected individuals.

Thousands of Cases Eligible For Relief

The justice department estimates that 220,000 convictions qualify to be reduced or eliminated.  Prosecutors in San Diego and San Francisco have begun to proactively reduce or eliminate convictions, but many other district attorneys in the state have said that they do not have the resources to follow suit. That puts the burden of relief on those with the convictions, many of whom may not be aware that they are eligible. Some with convictions that qualify for a reduction or elimination have taken it upon themselves to petition the court for relief, but only a small minority of those who are eligible have done so.

Sen. Scott Wiener, a Democrat from San Francisco who voted for the measure, said it “creates a simpler pathway for Californians to turn the page,” according to an Associated Press report.

State Sen. Joel Anderson, a Republican from San Diego County, said that reducing felony convictions to misdemeanors will allow people to regain lost civil rights, including gun ownership.

“This bill will take those people off the prohibited list, save us time and money,” Anderson said.

AB 1793 was introduced by Democratic Assembly Rob Bonta of Oakland. He said that “the role of government should be to ease burdens and expedite the operation of law — not create unneeded obstacles, barriers, and delay.”

Although AB 1793 received broad bipartisan support, not all lawmakers agreed with the elimination of past convictions. Republican Sen. Jim Nielsen of Gerber argued against passage of the measure by his colleagues in the Senate.

“This directs us to forget any prior behavior that was illegal,” Nielsen said. “They should not be given a pass.”

With the approval of AB 1793 by both houses of the California legislature, the bill now heads to Gov. Jerry Brown for his approval.

Commonwealth of the Northern Mariana Islands Votes to Legalize Marijuana

5,871 miles of open Pacific Ocean waters separate the Commonwealth of the Northern Mariana Islands (CNMI) from the coast of California. But the 15-island chain that makes up the United States’ westernmost territory is poised to do something no U.S. state has ever done.

On Wednesday, 18 of CNMI’s 20 legislators voted to approve a bill to legalize cannabis for adult use. The bill would also legalize medical cannabis and industrial hemp. And if CNMI Governor Ralph Torres enacts the bill, the territory will make legalization history—twice.

CNMI Would Be First U.S. Jurisdiction to Go From Total Prohibition to Full Legalization

This isn’t the first time CNMI lawmakers attempted to legalize cannabis. As recently as May, the CNMI Senate approved a piece of legislation nearly identical to the House-approved bill. Procedural issues, however, stymied the bill’s progress.

After another false start in the Senate, the House opted to file its own bill. It took less than a week for the full chamber to vote to approve the proposal.

That act alone makes CNMI unique among the 9 U.S. states that have legalized adult-use marijuana. Vermont comes closest, having legalized marijuana through a legislative process rather than a ballot initiative. But unlike CNMI’s proposed legislation, Vermont’s law doesn’t establish a retail market. The Mariana Islands’ legislation would.

There’s a second way CNMI would make legalization history if the bill becomes law. Every U.S. state that has legalized adult-use marijuana did so only after establishing a medical cannabis program. But in CNMI, there is no medical marijuana. The territory would be the first U.S. jurisdiction to go from total prohibition to full legalization.

What’s Next for Legal Cannabis in U.S. Territories?

Despite the tremendous distance between the Commonwealth of the Northern Mariana Islands and the continental United States, the territory has been closely watching legal cannabis unfold there. Indeed, the overwhelming support for the proposal in the House is due to lawmakers’ recognizing the significant benefits of legal weed.

The full text of the legislation, SB 20-62, cites how states with regulated markets for marijuana “have observed real and significant benefits to public health, safety and quality of life for all residents,” and goes on to list medical benefits like treatments for pain, epilepsy and PTSD, social benefits like a reduction in overdose deaths and lowered crime and economic benefits like tax revenue and job growth.

But the bill still has a couple more hurdles to clear before it becomes law. The CNMI Cannabis Act of 2018 is currently on its way back to the Senate for approval. After that, it will head to the desk of Gov. Ralph Torres, a Republican who has expressed concerns about legalization.

In response to House passage of the bill, Torres stressed the importance of taking “a look at both sides of the coin.” Torres wondered about the crime statistics in states with legal weed and other public safety issues.

Whether those reservations would ultimately lead Gov. Torres to veto the legislative effort and oppose the will of CNMI residents, however, remains to be seen. Public hearings about the act had higher attendance than any hearings senators could remember. Initially, legislators had designed the bill as a voter referendum before adopting it in the Senate.

New York to Offer Medical Marijuana as Prescribed Opioid Alternative

New York is set to significantly expand access to its medical cannabis program. Building off a change that added chronic pain to the list of qualifying conditions in 2016, the Department of Health will now allow anyone with a prescription for opioids to use medical marijuana as an alternative. Officials expect the new regulation will help grow a program struggling with access issues. They also hope to get more patients off of prescription opioids.

If You Have an Opioid Prescription, You Now Qualify to Use Medical Cannabis in New York

Opioid deaths are skyrocketing in New York, which legalized medical cannabis in 2014. One investigation found a 135 percent rise in deaths between 2013 and 2016.

In 2016, the opioid death rate was 15.1 per 100,000 people, nearly two percent higher than the national rate. And in an effort to combat the rapid rise of opioid overdoses and deaths across the state, the New York Health Department is making a major change to its medical marijuana program.

Health Department officials hope the change will help reduce the use of prescription opioids. On Monday, State Health Commissioner Howard Zucker announced that anyone with an opioid prescription would be eligible to use marijuana as an alternative medicine.

“So that means if an individual is taking prescription opioids, they could take medical marijuana as part of the program that were are pushing forward to hopefully come off prescription opioids as well,” Zucker told reporters.

Studies have found that medical cannabis can effectively treat chronic pain, without the dangerous side effects and addiction opioids cause. Other studies suggest cannabis can act as a “reverse gateway drug,” helping people struggling with addiction wean themselves off drugs.

The Health Department hopes that allowing doctors to prescribe cannabis instead of opioids will reduce the number of patients who end up addicted to drugs like OxyContin, Vicodin and Fentanyl.

Offering Medical Cannabis as an Opioid Alternative Could Help Lift New York’s Struggling MMJ Program

Gov. Andrew Cuomo signed the Compassionate Care Act into law in 2014. Since then, New York has struggled to grow its medical cannabis program. A short list of qualifying conditions, and restrictions on the kinds of cannabis products patients could access, hurt participation.

In 2016, New York added chronic pain to the list of qualifying conditions. The Health Department also made it possible for nurse practitioner and physicians assistants to make a medical cannabis recommendation.

Now, New York has 1,688 licensed caregivers and roughly 59,000 registered patients. Yet the program has licensed less than two dozen dispensaries across the state. The program has grown, but not as rapidly as advocates and patients would like.

Zucker feels allowing those with opioid prescriptions to use medical marijuana “is another way to move the program forward."

30 Arrested at Washington DC Marijuana Pop-Up Event

Marijuana pop-up events have been growing in popularity in Washington DC over the past month. That momentum has come to a grinding halt as DC cops crack down on the events. Over the weekend, 30 people were arrested at a marijuana pop-up.

Weekend Arrests

Over the weekend, police officers broke up what was described as a “marijuana pop-up event.” According to local news source WTOP, cops arrived to carry out a search warrant. It’s unclear what, exactly, the warrant was for.

Police quickly moved to break up the event. They seized multiple pounds of weed and other cannabis products containing THC. Additionally, they took around $10,000 in cash. Police also reportedly found three firearms.

Police arrested 30 people in connection with the pop-up. Reports said there were around 28 vendors at the event. It’s still unclear how many people were participating as sellers, vendors, or attendees.

DC’s Thriving Pop-Up Scene

Marijuana pop-ups have become pretty popular in the nation’s capital. The pop-ups have typically functioned without being harassed by law enforcement, thanks to a legal loophole.

In the fall of 2014, DC residents voted to legalize cannabis. The new law went into effect in February 2015. Under the new law, it’s legal for adults 21 and over to possess up to two ounces of cannabis. Adults can also smoke weed in private, but public consumption is not allowed.

Additionally, it’s legal for people 21 and older to give up to one ounce of weed to another adult. Adult DC residents are also allowed to grow up to six marijuana plants at home.

Although these laws technically don’t let people sell weed, the marijuana pop-up events function by “gifting” weed rather than selling it.

Vendors will sell non-marijuana products—like stickers, shirts, hats, or juice—and throw in some flower on the side, as a gift.

Since they are technically only selling the non-weed product, and giving the weed away to customers, vendors say they’re not actually violating any laws.

The Popularity of Pot Pop-Ups

Marijuana pop-ups have become so popular that DC locals tell High Timesthey’ve become an almost daily event.

Cannabis vendors who “gift” marijuana at pop-ups have established a working network of events and clients. In fact, residents in DC can easily find cannabis pop-ups being advertised on social media, especially Instagram.

Beyond the pop-ups, people have tried other methods for taking advantage of DC’s ambiguous weed laws. For example, some vendors offer home delivery. Of course, the product they’re actually selling is something like artwork, juice, or clothing. And after making a purchase, customers receive a little green on the side as a thank-you gift.

CEO of US marijuana company MedMen says Oregon, Colorado are 'horrible markets' to be in

• CNBC's Jim Cramer sits down with Adam Bierman, the co-founder and CEO of the marijuana dispensary operator whose stores have been dubbed the "Apple Stores of weed."
• Bierman explains why Oregon, Washington and Colorado are not considered ideal markets for weed retail.

Marijuana dispensary operator MedMen sees major hurdles in operating in Oregon, Washington and Colorado, where pot is medically and recreationally legal, co-founder and CEO Adam Bierman told CNBC on Monday.

Bierman, whose company functions in California, Nevada, New York and Florida, called the first three fully legal U.S. weed markets "horrible markets to be in" in an interview with "Mad Money" host Jim Cramer.

"[It's] good for business that those are tiny markets that, in the grand scheme of things, maybe matter not that much," the CEO said.

"What's really important to understand is every market since those markets came online [has] been supply constrained, so limited licenses and, most importantly, especially for the MedMen's case, the most arduous retail zoning restrictions known to man," Bierman continued.

While MedMen is licensed to operate in the United States, where some of its retail locations have been affectionately dubbed the "Apple Store of weed," the company is publicly traded in Canada on the Canadian Securities Exchange and the OTCQB Venture Market.

In early June, the Canadian Senate voted to legalize recreational marijuana nationwide. The move would make Canada the first and only country in the G-7 to fully legalize marijuana.

But Bierman won't stop at Canada.

"From the beginning, we've been the 'Why not?' people," he told Cramer. "Why can't you build a billion-dollar business in this industry? Why not? Why can't you take the biggest U.S. weed company and make it public and available for people to own all over the world? Now, there's a lot of roadblocks in that kind of an attitude and we can't list here in the U.S., so we have to list in Canada and, unfortunately, that's the only place to go. Now, fortunately, it is a place to go and they've been great partners."

According to MedMen, some of the company's California stores bring in over $20 million a year in revenue. When the company reaches $1 billion in revenues, Bierman said he'll "look at what's next."

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Part of MedMen's mission is to make marijuana mainstream, as illustrated by its latest marketing campaign, "Forget Stoner." The visual ads attempt to buck the "stoner" stereotype with photos of professionals and others who say they use marijuana.

It could even help stem the opioid epidemic sweeping the United States by offering individuals an alternative solution to prescription pills, Bierman said.

"The concept of a stoner or a stoner image is something that's yesteryear," the CEO said. "This is about Chardonnay moms. This is about working dads. This is about marijuana substituting and replacing, you know, other things that people are already utilizing that, in some instances, are detrimental to their health."

France Opens First Coffee Shops Selling CBD Products

Among European Union nations, France has some of the toughest laws against cannabis. Yet the country of nearly 67 million people has one of the highest rates of cannabis consumption in Europe. Recognizing the demand, some French companies have figured out a way to satisfy customers’ desire for cannabis, in a way that doesn’t break the law.

Across France, “coffee shops” selling cannabis and hemp products are springing up. But customers won’t find any products with THC in them. Instead, these coffee shops are exclusively selling CBD products.

Paris Is The Latest City To Open CBD Coffee Shops

Tucked away in Paris’ chic 11th arrondissement, curious shoppers are lining up outside CofyShop, a cannabis store selling CBD products.

Everything on the shelves, from tinctures and syrups to vape juice, edibles, topicals and even herbs, contains a negligible amount of THC. Tetrahydrocannabinol (THC) is the cannabinoid that produces the euphoric sensations users commonly call a high.

But shoppers won’t find anything containing more than 0.2 percent THC in CofyShop. What they will find is a wide assortment of CBD products, mostly produced from hemp.

Still, the fact that France’s cannabis coffee shops aren’t selling anything that would get users high seems to be lost on some first-time customers.

“I want to find out if the stuff they’re selling gets you stoned,” Marc, a 21-year-old lined up outside the shop told the Telegraph. “In theory, it has less than 0.2 percent THC, but I’ve heard it contains more CBD and that should have an effect, at least to make you feel relaxed.”

Cannabidiol, or CBD, is one of the key therapeutic compounds in cannabis. The wide range of medicinal applications of CBD include its relaxing, anti-anxiety effects.

Researchers around the world are investigating how CBD can treat neurological diseases, reduce seizures, fight cancer and reduce inflammation. Their findings continue to corroborate anecdotal evidence about CBD’s effectiveness as a remedy for a number of ailments.

The availability of CBD products throughout France comes from a loosening of some cannabis laws. A growing awareness of the legality of CBD has also contributed to the coffee shop phenomenon.

French Health Minister Says CBD Products Are Legal

In May 2017, newly elected French President Emmanuel Macron appointed Agnès Buzyn to Minister of Solidarity and Health. And in November of that year, Buzyn made a statement regarding the legality of cannabis and hemp-derived CBD products.

Buzyn supports the use of medical cannabis and has re-opened debate about how to expand access to it. France legalized cannabis for medical use in 2013, but the program’s restrictions make it a non-starter for most patients.

But in November, Buzyn announced that CBD was legal for public consumption under two conditions. First, products had to adhere to the 0.2 percent THC limit. And second, producers and retailers had to refrain from making any health claims about the products.

French authorities are also keeping a close eye on the activity of these shops, to make sure no illegal products end up on their shelves.

CBD products are undeniably increasing in popularity across France, drawing criticism from some and support from others. For the most part, however, the public seems to think CBD products are simply “low strength” versions of cannabis containing THC.

Critics are deploying gateway theory to suggest legal CBD will lead people to consuming illicit THC products. Supporters are excited to have access to high quality, potentially therapeutic products.

French cannabis coffee shops import all their CBD products from neighboring Switzerland. On average, shops are selling CBD for about US$15 per gram.

Donald Trump Teases Support for Bipartisan Medical Marijuana Bill

Just one day after Sens. Cory Gardner and Elizabeth Warren formally announced a bi-partisan bill to protect states’ rights to legalize cannabis, President Donald Trump hinted he might support the legislation if it can clear Congress. The President’s comment is, in fact, the third he has made in reference to Colorado Sen. Cory Gardner’s idea for a “states’ rights” approach to marijuana legalization. And now that the legislation is officially in the pipeline, Trump’s latest remarks suggest he hasn’t withdrawn his support.

Sen. Gardner Is Keeping Pressure On Trump To Support A States’ Rights Approach To Cannabis Legalization

Colorado Sen. Cory Gardner opposed his state’s efforts to legalize adult-use cannabis. But in a recent interview with NBC’s Morning Joe, Sen. Gardner acknowledged that “there’s no going back” on the issue of legalization.

Recognizing Coloradans’ desire for a legal and regulated cannabis program, Gardner teamed up with Massachusetts Sen. Elizabeth Warren to launch the STATES Act.

The Strengthening the Tenth Amendment Through Entrusting States Act would both protect states’ legal cannabis operations from federal prosecution and make essential services like banking and insurance available to the industry.

Sen. Gardner sees marijuana legalization as an opportunity to create a strongly federalist policy that lets states chart their own course on the issue. And framing legalization as fundamentally about states’ rights has also appealed to President Trump, Gardner said.

April was the first occasion Gardner was able to coerce support for his idea from the Trump administration. After Trump’s Attorney General Jeff Sessionsannounced a federal policy reversal on marijuana that threatened states’ legal medical and adult-use cannabis programs, Gardner held up confirmations for Sessions’ Justice Department nominees.

Sen. Gardner only ended his standoff with the Justice Department after Trump gave assurances his administration would not go after Colorado’s legal cannabis businesses. Furthermore, Gardner said Trump told him he would support a legislative solution with a states’ rights approach, the Washington Post reported.

Sen. Gardner also checked in with Trump on Wednesday, before he and Sen. Warren formally announced the STATES Act. Gardner reminded Trump about his previous comments and told the President about the aims of the new legislation. “He liked the idea—the concept,” Gardner said.

Will Donald Trump Support the Bill?

In a 20-minute exchange with reporters at the White House, the press pool asked President Trump about the Warner-Gardner legislation. “I probably will end up supporting it,” Trump told reporters, according to The Denver Post.

Gardner and Warren were pleased by Trump’s comment on the STATES Act. They hope the President’s remarks and the bill’s bi-partisan support will give it a boost in the Senate.

Legislators in the lower chamber are also supporting the Warner-Gardner bill. Reps. Earl Blumenauer (D-Oreg.) and David Joyce (R-Ohio) are sponsoring a bipartisan companion bill in the House. But their bill would amend the Controlled Substances Act to prevent the federal government from prosecuting individuals or entities that comply with state, U.S. territory, D.C. and tribal cannabis law.