Canopy Growth (NYSE:CGC) CEO David Klein has a "magic number" in mind for when the U.S. will legalize cannabis. In an interview with CNBC's Jim Cramer last week, Klein said that he expects cannabis will be legalized at the federal level in the U.S. in 2022.
Klein's view is based on the premise that the U.S. Congress will have to take action on legalizing cannabis as more states allow the legal use and sale of medical and recreational marijuana. If he's right, marijuana stocks are poised to soar -- perhaps like never before. But how magical is Canopy Growth's "magic number"?
At first glance, Klein's expectation that the U.S. will legalize marijuana in 2022 might seem a little naive from a political standpoint. He told Jim Cramer, "I think, as you watch more and more states move to legalization for medical or rec, you really bring in almost two more senators each time who are really going to feel compelled to not make criminals out of the people in their state who are doing what's legal in their particular state."
While his view could be correct, 33 states have already legalized either medical or recreational cannabis. That's 66 U.S. Senators who represent states where marijuana is legal in some form. But the Senate has yet to even vote in a bill that would legalize pot.