E Will Proper Regulation Promote Cannabis Industry Growth?

The cannabis industry has become one of the most exciting markets to invest in following the growing popularity of medical marijuana. Various governments across the world have shown a keen interest in the industry by allowing companies and research organizations to conduct numerous studies on medical applications of cannabis.

Some governments have already established frameworks for the legalization of cannabis with some like Spain already allowing private and controlled growing and possession of marijuana. In the U.S., the state of Colorado is one of the leading markets in the country as the legalization of recreational marijuana continues to open new opportunities in a handful of states.

This is what could finally drive the cannabis industry to its full potential. While medical marijuana is a genuine opportunity for industry growth in the long term, the legalization of recreational marijuana could help the cannabis industry reach greater heights in a relatively shorter time. But the former has higher chances of becoming legal globally than the latter.

With recreational marijuana, the process between growing and converting the product into cash is much shorter than what medical products go through. There isn’t much research required, no clinical trials and no drug administration approval needed.

Regulation has been the greatest obstacle to the growth of the cannabis industry but a lot could change soon. In most countries, cannabis is still classified under the category of drugs with no medical value and a substantial risk of abuse, but research has brought in another perspective to this argument and a lot could change in the coming years, including reclassification.

And while industry experts believe it could take a lot longer than expected before federal regulation in several countries, some like Canada are moving fast and this could trigger a chain reaction across the globe.

However, from a stock market investing point of view, it might be a while before the impact of recreational marijuana is felt. Currently, only small players in the industry have taken the opportunity to pounce but once more states legalize recreational marijuana, the bigger players might join the market.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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