As the U.S. and global cannabis landscape continues to rapidly evolve, 2024 is a critical year filled with potential breakthroughs and challenges. This article mines insights from industry professionals to provide a range of different predictions that point the way forward for the future of cannabis legalization. This article focuses on federal reform, international policy, and the financial outlook for the cannabis industry in the coming year.

The journey to federal legalization in the United States has been complex and often unpredictable. Experts weigh in on the likelihood of major legislative changes this year and how they could reshape the industry. Meanwhile, on the international front, changing policies in various countries are offering a glimpse of how cannabis could play a more significant role in global trade and healthcare.

Potential Policy Changes and Lifting of Bill 280E
We are cautiously optimistic that 2024 will be a good year for the cannabis industry. If cannabis is reclassified to Schedule III, or is declassified outright, that would be absolutely great news for the cannabis industry, and once Section 280E (Section 280E of the federal tax code for cannabis businesses) is repealed, it will be able to free up people who have been squeezed by it. Improved profit margins bring more and better profits to cannabis companies. With capital, employee compensation and benefits can be improved, making it easier to attract new talent and retain existing good employees. This would also give cannabis employers better access to healthcare providers.
—Kara Bradford, CEO, Viridian Staffing

It's an election year, which means campaign promises will be kept! Typically, cannabis groups and advocates will pressure officials to provide concrete solutions, including timelines and accountability measures. Specifically, the recent tragic death of an Oakland police officer while responding to a theft at a marijuana business may provide a boost to SAFE Banking Act negotiations and some action after HHS releases its position on reclassifying marijuana.
—Frederika Easley, Director of Strategic Initiatives at People Ecosystems

One word: unity. In my opinion, we still do not have a unified industry and we are not sufficiently advocating for the needs of small and micro businesses and traditional producers. We need a coalition that represents the needs of existing consumer communities and those who provide cannabis to them to ensure that federal legalization is more than just a transfer of power to large, profit-seeking corporations. When we come together, we gain greater power; when we don't, we are powerless. If we don't work together as a unit, the combined opposition will take control of our industry.
——Roger Volodarsky, founder/CEO of Puffco
We expect that several more states will legalize recreational marijuana in 2024. The road to federal legalization of medical or recreational marijuana is still long, as evidenced by the SAFER Banking Act’s inability to pass Congress. Bill 280E remains the No. 1 challenge facing the industry. High tax burdens stifle the growth and profitability of the cannabis industry, making it difficult not only for cannabis companies to reinvest in their businesses, but also to respond to price competition from the black market.
——Cory Parnell, BGM Principal/CEO

Because marijuana is controlled under federal Schedule I, capital has long been restricted and the investor base is smaller. Before the next presidential election, I believe there will be enough political pressure to reclassify marijuana use. The change may take some time to affect areas such as banking, payments and interstate commerce, but will have an impact on investment capital almost overnight. Now, many funds are eagerly awaiting the repeal of this federal ban. Ideally, this would provide struggling cannabis businesses with the infusion of capital they need, allowing for more competitive valuations.
——Kai Kirk – Chief Product Officer, Blaze Solutions

International Cannabis Outlook
In 2024, everyone needs to pay attention to Europe. German legalization is expected to become law in April, and leaders of several other European countries have said they will push for similar policy modernization efforts in their respective countries once Germany legalizes it. Legalization will be different in Europe than it is in North America due to national agreements across the continent. However, there are still huge opportunities and industry members need to take action in 2024 to position themselves strategically for the years to come. There may well be more activity in Europe than in any other region on earth, including activity in countries that may not currently be on the radar.
——Alex Rogers, ICBC founder/CEO
The European cannabis industry will continue to implement more aggressive cannabis policies and expand domestic markets. We predict that Germany's latest cannabis legislation will be a major catalyst, which includes the reclassification of cannabis as a non-narcotic and the expansion of the medical cannabis market. In fact, it's already happening: Switzerland has started a pilot for an adult-use cannabis program; the Czech Republic has announced a progressive new cannabis policy; Malta has legalized cannabis social clubs; and the Netherlands has launched a fully legal, full-scale pilot project. 2024 may be seen as an important milestone for European cannabis policy. Marijuana prohibition has begun to end, and new market opportunities are emerging.
——Niklas Kouparanis, CEP, Bloomwell Group

Finance and Market Structure
Regardless of the outcome of cannabis reclassification, or the potential passage of the SAFER Banking Act, three key questions will remain unresolved in 2024:
1. Cashless payments will continue to be scrutinized by credit card companies and will continue to be closed.
2. Access to capital will not improve. Social equity holders will either find it difficult to maintain their ownership or be unable to operate.
3. The ripple effects of the cannabis collection crisis will begin to ripple throughout the supply chain—starting with growers—and will lead to an increase in layoffs and bankruptcies.

——Abby Kaufmann, Sales Director/Board Member, CRB Monitor
2024 will see major changes in the way debt and late payments are managed in the cannabis industry. We expect to see:
1. Pay more attention to credit and collection practices: Enterprises will pay more attention to implementing strict credit assessment and more effective collection strategies to deal with unknown financial risks.

2. The emergence of advanced credit scoring tools: Integrating credit reporting systems into professional associations will completely change the way companies assess credit risks, providing the industry with more detailed and accurate dynamic assessments.

3. Shift to the accounts receivable function: Companies will realize the importance of separating the accounts receivable function from the sales team. This will streamline operations, improve accuracy and ensure proactive management of credit and collections.

4. Accelerate the submission of debt collection accounts: In order to minimize the impact of delayed payments, reduce the risk of default and create a more stable financial ecosystem, enterprises will speed up the submission of overdue accounts to debt collection within 90 days.
 ——Brett Gelfand, managing partner of Cannabiz Enterprises

Overall, event marketing spending will shrink further in 2024, with frequency and attendance declining. Before the pandemic, there was already a glut of marketing campaigns. In 2023, major cannabis events in the western United States have been reduced by 30-50%, and some have even been completely canceled at once. Trade shows reflect the health of an industry and are often a leading indicator. Yet licensed operators, the lifeblood of our industry, lack access to capital, the quintessential oxygen that enables industry growth. The ROI will be the Queen (which is the most powerful piece in chess). Trade events are an amazing catalyst for career growth and business success. Businesses that deliver compelling content in conference rooms and exhibition halls, engage their target audiences, and listen to market needs will stretch limited event dollars to the limit. Or as Warren Buffett once said: "Price is what you pay, value is what you get."

—George Jage, co-founder/CEO, MJ Unpacked
We've seen IP battles rage on for several years now, and you should expect the pace of IP litigation to accelerate in 2024, particularly for ancillary businesses such as those involving agtech, atomization, medical and extraction equipment. As competition intensifies and new players enter the market, patents will become a key differentiator. Patents not only protect a company's innovation but also provide long-term value to investors and acquirers. By implementing an IP portfolio, a company will strengthen its market position and demonstrate the strength of its patent portfolio.

——Douglas Fischer, President of the Advanced Atomizing Equipment Association
The cannabis industry is poised for unprecedented growth in 2024, but success will not favor those who go it alone. This year's slogan is collaboration. Businesses must realize that operating in separate entities no longer works. The key is to become stronger together – combining forces, pooling expertise, and building strategic partnerships. Investors are increasingly looking for industry unity. A combined firm of experts not only reduces risk but also makes a compelling case for sustainable success. This year, teamwork isn’t just a perspective, it’s a choice. This is the winning strategy.
——Jordan Tritt, Founder/CEO, Black Panther Group

It’s a big year for the U.S. cannabis industry, with the number of states legalizing adult-use cannabis reaching half. By 2024, marijuana will be legal in 24 states, and by 2025 it will be legal in 25 states. This year, we will see hopeful operators in states across the country struggling to stay open as competition for capital remains fierce in 2024. Businesses in Maryland and New York will eventually be approved, but face financing difficulties and operational difficulties. Self-reliance, employee stock ownership plans and tax loopholes will prevail, but only efficient, compliant operations will succeed. Legalization will continue to advance, pure medical programs will continue to advance, and profit-making companies will continue to refine, grow, and expand as the market continues to grow. Many emerging state access opportunities will be available in states such as Delaware, Kentucky, Maryland, Minnesota, New York, Ohio, and Virginia.
——Sumer Thomas, Canna Corporate Consultant, Vice President of Regulatory Operations