Welcome to my latest Weed Report. The article below is a condensed transcript; my video contains charts and further details.

After a tough year for the stock market in general and cannabis stocks in particular, the stage is being set for more profitable opportunities in 2023. To pinpoint the most appealing investments in the marijuana and psychedelics sectors, you need to stay informed about the latest news and regulatory developments.

Let’s take a quick trip around the wide world of weed and psychedelics.

Federal courts. A federal judge on February 3 declared that the ban prohibiting people who use marijuana from possessing firearms is unconstitutional. The U.S. District Court for the Western District of Oklahoma dismissed an indictment against a man who was charged in Oklahoma in 2022 after police discovered marijuana and a handgun in his vehicle during a traffic stop.

In doing so, Trump-appointed Judge Patrick Wyrick agreed with attorneys that the statute banning “unlawful” users of cannabis from possessing firearms violates the Second Amendment of the Constitution. The ruling is expected to have nationwide ramifications.

Medical studies. State-level marijuana legalization is linked to reductions in opioid codeine addiction, according to a new study released in January that uses data from the federal Drug Enforcement Administration (DEA).

WATCH THIS VIDEO: Proven Criteria for Picking The Best Pot Stocks

The paper, published in the journal Health Economics, looked at data on prescription opioid shipments in 11 states that legalized cannabis for adult use between 2010-2019, comparing them to states where marijuana is illegal. The study found that recreational legalization is linked to a 26% reduction in retail pharmacy-based codeine distribution.

The researchers wrote:

“Collectively, our findings are consistent with the hypothesis that reductions in opioid demand affected by [recreational cannabis laws], unlike [medical cannabis laws], may be evidence of decreased opioid misuse more than decreased use of prescription opioids to manage chronic pain.”

Australia. The Aussie government last week rescheduled psilocybin (the psychoactive ingredient in “magic mushrooms”) and MDMA (aka Ecstasy) to allow access to people with post-traumatic stress disorder (PTSD) and chronic depression.

The psychedelic drugs aren’t getting legalized for wide public use. However, by putting them under the government’s Schedule 8 drug code for therapeutic use, mental health professionals will be allowed to prescribe the psychedelics. The drugs will remain categorized under the more stringent Schedule 9 for unauthorized use.

Germany. The three governing parties in Germany included a plan to legalize cannabis in their coalition agreement of 2021. As of this month, that plan is getting closer to fruition, although details still need to be ironed out.

Under the plan so far, German consumers would be allowed to buy up to 30 grams of cannabis for private consumption with supplies cultivated and distributed through a controlled market.

Germany is the largest economy in the European Union and the growth engine of the Continent. Medical cannabis has been legal in Germany since 2017. Private recreational use of the drug is banned, although law enforcement adopts a lax attitude towards small amounts.

The state of the states…

As of this video presentation, medical cannabis is legal in 37 states and adult-use (recreational) marijuana is legal in 21 states. All states with adult-use laws have legalized medical marijuana.

Nearly half of the U.S. population now reside in jurisdictions with some form of legalized adult-use marijuana. What’s in store at the state level so far in 2023?

Kentucky. Gov. Andy Beshear (D) signed an executive order in November 2022 to allow Kentuckians with qualifying medical conditions to possess and consume small amounts of legally purchased cannabis to treat their conditions.

As of January 1, 2023, Kentuckians with qualifying medical conditions can possess up to 8 ounces of cannabis at a time.

The executive order is not a substitute for medical cannabis legalization. Accordingly, three bills introduced on January 3 are pending in the state general assembly to lift pot restrictions.

House Bill 47 would allow adults 21 years and older to consume up to 1 ounce of cannabis for personal use without penalty; House Bill 22 and Senate Bill 51 would establish a Cannabis Control Board to administer the cultivation, processing, transportation, sale, use, taxation and licensing of medical and adult-use cannabis.

Maryland. House and Senate lawmakers in the state last Friday introduced long-delayed legislation to tax and regulate marijuana, after voters in the November midterms approved a legalization ballot initiative.

The measure would prepare Maryland to regulate marijuana commerce as the state law legalizing possession of up to 1.5 ounces of marijuana for adults takes effect on July 1, 2023.

Cannabis would be taxed at 6% for the first fiscal year starting this summer, and rise by 1% each year to 2028, until it reaches a maximum of 10%. The revenue would go toward community reinvestment funds, localities, and a Cannabis Public Health Fund and Cannabis Business Assistance Fund.

Minnesota. Lawmakers filed an adult-use cannabis legalization bill in January 2023, and political oddsmakers say the bill is likely to pass this year. Meanwhile, Gov. Tim Walz (D) included adult-use cannabis legalization in his 2023 state budget proposal.

North Carolina. A medical cannabis legalization bill, known as the NC Compassionate Care Act, passed the North Carolina Senate last year before stalling in the House.

The legislation’s primary sponsors refiled the bill this year as Senate Bill 3. Polls show that legalization is popular with the state’s voters; chances of the bill’s ultimate passage this year are good.

Editor’s Note: As I’ve just made clear, the marijuana industry is dynamic and rapidly expanding. Every portfolio should have exposure to cannabis-related companies. That’s why I’ve launched a service detailing how you can financially benefit from the consumer mainstreaming of weed.

Called Marijuana Profit Alert, my publication is your guide to reaping profits from the marijuana bonanza. Click here to learn more.

John Persinos is the editorial director of Investing Daily.

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