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Illustration: Aïda Amer/Axios

The cannabis industry is poised to undergo another major change as Colorado's House Bill 1090 takes effect next month, providing investment opportunities for publicly traded companies, venture capitalists and private equity firms, which were previously barred.

Why it matters: The law will push cannabis into a new phase of development and foster considerable consolidation in the industry, creating new businesses and driving out others.

  • Wall Street, venture capital funds and private equity firms will now have the opportunity to enter a fast-growing industry and provide the funds to scale at a new level.
  • "We are moving to a national, even international economy in marijuana," Jim Burack, director of the Colorado Department of Revenue's Marijuana Enforcement Division, tells Axios.

The big picture: Colorado is opening up right as investors have begun to sour on publicly traded pot stocks, which have seen their once massive valuations cut in half over the course of the year.

  • "There was too much exuberance and froth in the markets," Emily Paxhia, managing director at cannabis investment firm Poseidon Asset Management, tells Axios.
  • "Anyone who was prudent about valuing the market saw this coming from 10 miles away. Now there will be a shift to operational efficiency in many of these businesses. That's a healthy innovation for any market."

Between the lines: While Canadian companies like Aurora Cannabis and Canopy Growth have drawn massive valuations, investors have been eager to find a way into the U.S. market, which has a much larger and richer consumer base.

  • Investors will now have access to a U.S.-based mature marijuana market that includes businesses ranging from restaurants and property development to advertising and wellness.

Yes, but: The industry's growth prospects remain restricted by the fact that it is federally illegal, making many traditional avenues for growth impossible.

Still, Colorado's deregulation of the industry and the potential for access to banking services through the SAFE Banking Act, which recently passed the House of Representatives, could be game changers.

  • The new law "opens up funding opportunities that we have really not had available to us before," Nancy Whiteman, CEO of edibles company Wana Brands, tells Axios.
  • "Having more and more cannabis companies that are operating in multiple states and some of them with very large, deep pockets, it's changing a lot about how the industry operates."

Go deeper

NRA files for bankruptcy, says it will reincorporate in Texas

Wayne LaPierre of the National Rifle Association (NRA) speaks during CPAC in 2016. Photo: Saul Loeb/AFP via Getty Images

The National Rifle Association said Friday it has filed for voluntary bankruptcy as part of a restructuring plan.

Driving the news: The gun rights group said it would reincorporate in Texas, calling New York, where it is currently registered, a "toxic political environment." Last year, New York Attorney General Letitia James filed a lawsuit to dissolve the NRA, alleging the group committed fraud by diverting roughly $64 million in charitable donations over three years to support reckless spending by its executives.

37 mins ago - Politics & Policy

Biden: "We will manage the hell out of" vaccine distribution

Joe Biden. Photo: Chip Somodevilla / Getty Images

President-elect Joe Biden promised to invoke the Defense Production Act to increase vaccine manufacturing, as he outlined a five-point plan to administer 100 million COVID-19 vaccinations in the first months of his presidency.

Why it matters: With the Center for Disease Control and Prevention warning of a more contagious variant of the coronavirus, Biden is trying to establish how he’ll approach the pandemic differently than President Trump.

A new Washington

Photo: Stefani Reynolds/Getty Image

D.C. Mayor Muriel Bowser said Friday that the city should expect a "new normal" for security — even after President-elect Biden's inauguration.

The state of play: Inaugurations are usually a point of celebration in D.C., but over 20,000 troops are now patrolling Washington streets in an unprecedented preparation for Biden's swearing-in on Jan. 20.