Cannabis Companies Invest Record Amount on Lobbying
The marijuana industry is lobbying Washington authorities more than ever. Cannabis business have spent a record $ 3.77 million on lobbying in Washington so far this year. That’s nearly 40% greater than last year and 133% higher than 2017.
So what’s going on here? Here’s the big picture. Cannabis is a brand-new, rapidly growing industry. And marijuana business are attempting to set themselves up to dominate the marketplace. However due to the fact that cannabis is still prohibited at the federal level, those business are coming to grips with conflicting state and federal laws, the lack of interstate commerce, little access to banking, and monumental quantities of red tape. So they’re pressing the government to make changes so that the industry can grow unrestricted.
On a micro level, this spike in spending is originating from business battling for the SAFE (Secure and Fair Enforcement) Banking Act. The bill would safeguard banks and other banks that do company with the cannabis industry.
As it stands now, monetary organizations that serve marijuana companies face legal issues because the federal government still hasn’t legalized marijuana. Lobbyists argue that this is a huge problem, due to the fact that it forces cannabis organisations to operate with no banking services. Without banking services, those organisations are conducting sales largely in cash. That makes them a target for theft and other criminal offenses. And it makes it difficult to raise the capital required to expand and grow.
Though the SAFE Banking Act passed in your home, it has an uncertain future in the Senate. Senate Majority Leader Mitch McConnell is very protective of Kentucky’s burgeoning hemp market. And because cannabis is a risk to that market, he’s unlikely to permit the bill to make it through.
Marijuana is also a danger to the pharmaceutical industry. And nobody spends more on lobbying than pharma companies. The global pharmaceutical market was worth around $ 1.2 trillion in2018 And pharma companies have actually invested $ 4.3 billion on lobbying because 1998– more than any other market during that time frame.
Marijuana will ultimately capture up. The marijuana market is currently worth $104 billion, according to New Frontier Data. Some approximate it might grow to $66 billion by 2025 And as the market grows, so does its lobbying power.