 Many cannabis advocates, as well as those who just want to get high, were extremely disappointed with the way the federal government handled cannabis legalization progress this past year. Federal cannabis legalization simply didn’t happen. Nor did passing any type of federal banking reform for the cannabis industry. Many people felt that 2022 was the last chance for cannabis issues… at least for several years. This is due to Congress & Senate party control, which is shifting from stronger Democratic leadership, to more Republican leadership in Congress. Democrats have traditionally been more favorable to cannabis issues than the GOP. But the Democrats did not manage to get the support they needed to push through just about all of the hoped for cannabis legislation. However, while the failure to pass legalization or banking reform is very disappointing, there was some very solid progress. And while it’s painfully slow progress, it’s still moving forward! That progress was seen in the historic passing of the very first pro-cannabis legislation ever: the Medical Marijuana and Cannabidiol Research Act, which was signed into law by President Biden during the first week of December. And while it’s unlikely that the Republican majority will pass cannabis legislation, the wave of state’s legalizing could be the push needed to change some representatives minds. In 2022, Maryland and Missouri passed legislation in favor of recreational adult use, bringing the nationwide number of states with legal recreational adult use cannabis up to 21. Additionally, Washington, D.C. and two U.S. territories: Guam and the Northern Mariana Islands with legalized recreational adult use. Also in 2022, earlier passed legislation saw the official launch of recreational adult use cannabis sales in Montana, New Mexico, New Jersey, Vermont, Rhode Island, and New York. Another win for cannabis legalization was when President Joe Biden issued an order in October 2022 to review the status of cannabis as a schedule one drug on the Controlled Substances Act. If it’s found that cannabis should be descheduled completely, that would legalize cannabis. There are some political observers who believe its probable that the current administration could deschedule cannabis just before the 2024 Presidential election. But 2022 also brought some state defeats, with voters in Arkansas, North Dakota and South Dakota all failing to get cannabis legalized. South Dakota residents actually did vote on and pass legalization of both medical and recreational use 2020, but Governor Kristi Noem succeeded in overturning the results based on a technicality. Her ongoing campaign against the plant translated to more defeat in 2022’s election. Cannabis businesses felt negative effects from the ongoing national supply chain and inflation issues, but they also were dealing with their own price issues. Prices per pound varied from state to state, with the new markets seeing a surge in prices, and the established markets suffering from over supply and other issues causing prices to plummet. But according to Cannabis Benchmarks, a provider of financial, business and industry data, they are forecasting a slight pricing rebound in early 2023. Supply chain issues have been causing widespread problems for everyone, though. That translated into significant job layoffs for many cannabis businesses in 2022. Many of the biggest multi state operators cut as much as 25% of their work force. 2022 saw devastation to the stock market, including cannabis stocks. This caused equity to dry up as well. Matt Bottomley, managing director at Canaccord Genuity pointed out that although there was volatility with cannabis focused investors and stocks, there is still a tremendous amount of interest and there is plenty of capital waiting to be invested, once investors feel the time is right. Bottomley pointed out that when President Biden announced his pardoning cannabis convictions and instructions to have the schedule 1 status reviewed, “the entire sector … had a 50% swing, in one day.” He said if you’re not concerned with specific timing, he believes “that everything is moving in the right direction.” And he added, “Whether that’s legalization or de-scheduling, I think it’s all but a certainty to happen.” The National Organization for the Reform of Marijuana Laws, or NORML, recently announced that according to a PubMed.gov keyword search, researchers published more than 4,300 scientific research papers about cannabis in 2022. Over the last decade or so, there have been approximately 42,500 scientific papers exploring cannabis. This ever growing number of research studies focused on cannabis are indicative of the nations interest in cannabis. This helps normalize it, and increases support. And that support is certainly growing, rapidly. Several polls this year showed that nearly 3/4ths of Americans polled said they do support cannabis legalization. That is a huge positive sign. So, while some people may see 2022 as a disappointing year for cannabis due to it not being federally legalized or achieving banking reform, stepping back and really looking at the big picture shows that there actually was a great deal of progress. And progress adds up to eventually move everything forward. It’s hard to be patient, but we’ll get there!
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