Three states likely to legalize marijuana in 2021

As crazy as 2020 has been, it has been a banner year for the cannabis industry and marijuana stocks in the US, with the November election giving the green light. Thirty-six states allow medical cannabis, and 36 allow adult use and/or retail sale of marijuana. Writes about this Fool.

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However, this is not the end of the story. The Gallup National Research Center found that favorability of legalizing these drugs in the United States reached a new record high in 2020 at 68%. So it makes sense that in the new year, more states will push to legalize marijuana for medical or adult use. Here are the three states most likely to legalize marijuana.

New York

Perhaps this year New York, a potential multi-billion dollar cannabis market, will legalize recreational marijuana.

Back in 2019, state legislators came very close to allowing the growing of “weed” for adults. Discussions about legalizing recreational marijuana hit a roadblock when some members of the New York Legislature disagreed with some social justice considerations, such as expunging existing marijuana possession convictions. This disagreement led to negotiations stalling.

In 2020, New York again had a good chance to legalize adult marijuana use. Unfortunately, it was again disrupted, albeit this time due to the coronavirus. In 2021, legislators and the state governor will almost certainly push for the legalization of recreational marijuana. Neighboring New Jersey just voted to legalize cannabis for adults, and it's important that New Yorkers don't go there for marijuana or take money out of their state.

In addition, New York has been financially affected by the coronavirus. Legalizing marijuana for adults and imposing an excise tax on retail sales (in addition to local and state taxes) will allow the state to generate additional income.

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Connecticut

Since 2011, Connecticut has had a Democratic governor and both houses of its legislature are controlled by Democrats. In November, when Gallup released its national poll, it found that support for legalizing adult-use marijuana among Democrats was an astonishing 83%! By comparison, Republicans have just 48%.

Since the November elections, Democratic control in Connecticut has expanded, which gives more than enough power to enact legislative changes. What's more, Connecticut's neighbors, New Jersey and Massachusetts, have already legalized recreational marijuana. Like New York (also a neighbor of Connecticut), Connecticut lawmakers will want to act sooner rather than later so that revenues don't go out of the state.

Virginia

While this may seem like an unusual opportunity, Virginia seems to have a real shot at being the first southern state to green-light adult marijuana in 2021.

In April, Gov. Ralph Northam signed legislation decriminalizing cannabis and legalizing medical marijuana, he has publicly stated his desire to legalize recreational weed, and even provided a plan to do so in late November. Full legalization in the state could generate up to $1 billion in sales annually, according to the Virginia Marijuana Legalization Task Force.

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Like New York and Connecticut, politics can help you get things done. This year, for only the third time since 199, the Virginia governorate and legislature have been under Democratic control. With both the legislatures and the governor seemingly on the same side, Virginia looks set to have a real opportunity to make history in 2021.

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