The marijuana bill proposed by Republicans targets a billion-dollar market

Written by on 12 November, 2021

Democrats are no longer alone in the fight to legalize marijuana at the federal level in the United States, as a new Republican-led legislative proposal has emerged.

That’s right, Marijuana Moment revealed last Friday that Rep. Nancy Mace (R-S.C.) is leading a bill to declassify and tax marijuana.

The new legislative proposal, known as the States Reform Act, targets a cannabis market that is expected to grow to $51 billion in global sales by 2025, TheStreet reviewed.

The legislative initiative proposes to marijuana be officially a controlled substance similar to alcohol and levies a 3.75% excise tax on it.

Also, the proposed legislation would place interstate regulation of marijuana under the Alcohol and Tobacco Tax and Trade Bureau, which is an agency within the Treasury Department. The U.S. Food and Drug Administration would also have a limited role in product regulation.

Upon news of the new bill, the marijuana industry reacted quickly as shares of Cannabis ETF, Curaleaf, and Green Thumb initiatives shot up significantly. “The bill would tap a substantial market,” TheStreet reviewed.

In a report released in September, analytics firm New Frontier Data said global sales of high-THC cannabis through legally regulated sources totaled $23.7 billion in 2020, with the U.S. alone accounting for $20.3 billion of that total.

Also, in the report, they forecast that sales in current legal markets will exceed $50 billion by 2025, driven by expanded legal access and strong consumer demand.

The bill is being circulated among stakeholders, and a final version is expected to be officially introduced later this month.

In the United States, marijuana at the federal level is still prohibited; however, more and more states in North American countries have legalized the plant for recreational or medicinal purposes.

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