Kamala Harris in Focus: Biden’s Withdrawal and the Road Ahead
The TDR Three Key Takeaways Regarding Kamala Harris Presidental Aspirations
- President Biden’s endorsement of Vice President Kamala Harris does not guarantee she will secure his delegates, who are now free agents.
- The Democratic nominee will be decided through either a rollcall vote or an open convention, with Harris as the leading candidate.
- Harris’s advocacy for cannabis legalization signals potential positive impacts on cannabis stocks if she becomes the nominee.
President Joe Biden announced on July 21st that he is dropping out of the 2024 presidential race, endorsing Vice President Kamala Harris but leaving his delegates free to choose independently. This move has created significant uncertainty within the Democratic Party as it prepares for the upcoming presidential election.
The Democratic Party now faces a unique situation. Normally, delegates follow the voters’ choice in primaries, but with Biden’s withdrawal, his delegates are now free agents. The nominee will be chosen through either a rollcall vote before the convention or an open convention where delegates debate and vote until a majority is reached.
The Democratic Party has two potential paths to select its nominee. First, they might hold a rollcall vote before the convention, scheduled for August 19-22 in Chicago. If a candidate wins a majority of delegates in this vote, they secure the nomination before the convention. However, if no candidate wins a majority or the party decides against a rollcall vote, an open convention will be held. Here, delegates will debate and choose a nominee, with candidates presenting their cases to the roughly 4,000 delegates who will vote until a majority is reached.
Another crucial question is the fate of the $90 million in funds Biden’s campaign has on hand, plus additional funds from political action committees. If Kamala Harris becomes the nominee, she will likely receive these funds. If she is not chosen, Biden’s campaign can transfer at least some of the funds to the new nominee. The details will depend on how the funds were pledged, meaning donors could play a significant role in deciding the next candidate as they shift their support to a viable nominee.
Kamala Harris, endorsed by Biden but not yet by former President Barack Obama, remains the leading candidate. Speculation about Michelle Obama potentially entering the race is fueled by the convention being held in Chicago, the Obama’s hometown. However, Harris’s position is strong, with Biden’s endorsement giving her an initial edge.
A Harris presidency could significantly impact the cannabis industry. Harris has consistently advocated for legalizing cannabis, decriminalizing marijuana, and expunging non-violent cannabis-related convictions. Her stance indicates potential progress and opportunities for the industry, including the possibility of federal legalization.
Several potential vice-presidential candidates could influence the election’s impact on the cannabis industry:
- Josh Shapiro, Governor of Pennsylvania, supports legalizing recreational marijuana. He believes that regulating and taxing cannabis can generate revenue, create jobs, and address social justice issues. Pennsylvania is expected to pass adult-use legalization by the end of 2024, making it one of the largest cannabis markets in America.
- Andy Beshear, Governor of Kentucky, is open to exploring the medicinal benefits of cannabis. While not openly supporting full legalization, he backs efforts to legalize medical marijuana in the state, presenting another positive for the industry.
- Roy Cooper, Governor of North Carolina, supports advancing the cannabis industry. His backing would further strengthen Harris’s position on cannabis legalization.
The Democratic Party’s decision-making process and the potential candidacy of Kamala Harris bring significant implications for the upcoming election and the cannabis industry. Harris’s advocacy for cannabis reform, along with supportive vice-presidential candidates, signals potential positive impacts on cannabis stocks and federal legalization efforts.
