On this episode of the Trade To Black podcast for Wednesday, November 6th, we’ll be looking at the results of the US federal election yesterday, and what a Donald Trump presidency might mean for the cannabis industry moving forward. Gretchen Gailey of Panoptic Strategies joins us to recap and discuss what happened in the state of Florida and why Amendment 3 did not pass. With a wave of red sweeping the senate, we’ll also explore what’s next for rescheduling and SAFE banking.
While it might be too early to speculate on long term impacts, the election had a most definite impact in the market for the short term. Cannabis stocks declined sharply, a combination of Amendment 3 failing to pass in Florida’s election, plus the shift in Senate control. Hedge fund managers and experts expressed skepticism about short-term recovery, with some labeling the stocks “uninvestable” until regulatory clarity emerges.
Florida stood to become one of the largest adult recreational use markets in the world, and investors—and the industry leaders—were banking on that growth. Key players like Trulieve and Curaleaf made significant investments in anticipation of legalization, and both were hit hard in the markets.
Adding to this unease, the Trump presidency plus the sweep in the House and Senate could delay cannabis reform, especially regarding rescheduling and SAFE Banking. With the changing administration, Trump has the right to appoint several roles, including the DEA and Attorney General, which could cause delays to the current hearing. Finding an AG and DEA leadership that will support reform remains an obstacle, however Gretchen Gailey points out that now, with unified Republican control, excuses for legislative inaction are fast running out.
Join us as we discuss the outlook following the 2024 Federal election, and what sort of strategies will need to be adopted to keep momentum in the process towards legalization.
