The debate surrounding cannabis legalization in the US encompasses various aspects, including economics, law, and social justice. As of April 2024, recreational cannabis is legal in 24 states, allowing half of the US population to consume it legally. However, cannabis remains illegal under federal law, a status that investors anticipate may change soon. Industry expert Emily Paxhia outlines three potential pathways for cannabis legalization: federal rescheduling, legislative action, and the judicial route. The federal rescheduling route involves reclassifying cannabis as a Schedule III substance, acknowledging its medical benefits and lower potential for abuse. The legislative route focuses on passing the SAFE Banking Act, which would bridge the gap between federal and state laws, facilitating banking and financial services for cannabis businesses. The judicial route emerged when cannabis companies in Massachusetts challenged the interpretation of the Controlled Substances Act in court, potentially leading to more equitable tax treatment and retrospective financial adjustments for impacted companies. As the cannabis industry continues to expand, pressure for federal legalization intensifies. The outcome of these three pathways will significantly impact the industry, providing access to more capital, boosting consolidation, enhancing production efficiency, and expanding operations.