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The recent surge of cannabis stocks following reports of a Republican-led bill seeking to legalize and tax marijuana takes aim at a market expected to grow to $51 billion by 2025.

On Friday, online magazine Marijuana Moment broke the news that Rep. Nancy Mace (R-SC) is leading a bill to deschedule and tax marijuana.

Currently in draft format, the bill known as the States Reform Act proposes officially making marijuana a regulated substance akin to alcohol and slapping it with a 3.75% excise tax.

The Cannabis ETF  (THCX) – Get Cannabis ETF Report soared on the news and it is clear the bill would tap into a substantial market. How substantial has been studied closely for the last two years by experts worldwide.

In a report issued in September, analytics firm New Frontier Data said global sales of high-THC cannabis through legally regulated sources totaled $23.7 billion in 2020, with the U.S. alone accounting for $20.3 billion of that total.

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The proposed legislation would put the interstate regulation of marijuana under the Alcohol and Tobacco Tax and Trade Bureau, which is an agency within the Treasury Department. The U.S. Food and Drug Administration also would have a limited role in regulating products

The bill is currently being circulated among stakeholders and not expected to be filed until the end of the month.

Eighteen U.S. states, most recently Connecticut in June, as well as the District of Columbia, have legalized the recreational use of marijuana,, according to Reuters. 

Marijuana, which remains prohibited by federal law, has been approved for medical use in 36 states and the District of Columbia.

Analysts did not hold out much hope for the legislation, with Stifel’s Andrew Carter stating in a research note that he believes the bill “has limited near-term prospects.”