Is Los Angeles the Cannabis Capital?

California boasts the largest economy in the United States, and sixth largest in the world. That being said, it’s no surprise that with the passing of Proposition 64, it would seem promising if not obvious that Los Angeles become one of the largest cannabis capitals in the world.

CNBC states that in LA, just the medical cannabis market alone is worth upwards of $1 billion, that’s larger than Denver’s entire market. With recreational use now legal, that number will grow exponentially with estimates putting the California market at $6 billion by 2020. State licensing guidelines aside, which are expected to take at least one year, the opportunities for the cannabis industry, are potentially limitless.

“Potentially,” being the operative word. What felt like a victory for cannabis communities all around California, was soon tainted by the President-Elect’s choice to appoint Alabama Senator, Jeff Sessions as Attorney General. Sessions, who’s been very vocal about his views against the legalization of cannabis in any form has called the drug, “dangerous,” has said “good people don’t smoke marijuana,” and was just recently quoted as saying, “We need grown-ups in charge in Washington to say marijuana is not the kind of thing that ought to be legalized.” It’s statements like this that have dispensary operators feeling anxious about the future of their businesses.

The LA Times, mirrored this sentiment with their article questioning the risk factor of lending money to those wanting to open a business in the cannabis industry due to the unpredictable modifications that may still be implemented in laws surrounding cannabis distribution. The article goes on to say that despite the approval of Prop 64 and, “ground rules for pot businesses set to take effect in 2018, it remains difficult and expensive for companies that want to grow, process or sell cannabis to borrow money.

Change doesn’t happen overnight and setbacks are to be expected, that shouldn’t yield our confidence in California cannabis.