Cannabis Stocks Jump After Talk Of Federal Legalization
Cannabis stocks are on fire after power players in the federal government have given signs that there is the potential for nationwide legalization. Cannabis legalization at the federal level would be a major victory in the context of cannabis investing. However, the Senate doesn’t appear willing to take up the matter, especially with CAOA on the horizon. Furthermore, President Biden hasn’t spoken about cannabis legislation since campaigning for the highest office in the land.
In short, it appears as though the prospect of holding a Congressional vote to legalize cannabis at the federal level is merely lip service and somewhat of a symbolic gesture. However, cannabis investors were quick to load up on cannabis stocks. The question is whether those cannabis investors will stay on board for the long haul or look to make money in the short-term with a quick flip.
About The Upcoming Vote
The United States House of Representatives will soon vote for a second time on the matter of cannabis legalization. The issue of legalization takes official form as the MORE Act, short for Marijuana Opportunity, Reinvestment and Expungement Act. If the Act passes both houses of Congress, it will make cannabis consumption for recreational purposes legal nationwide.
The bill is included in a list of a plethora of other measures that the House will review next week. A prior version of the MORE Act made it through the House in 2020 yet failed to pass through the Senate’s conservative Republicans.
Progress On The Cannabis Front
Even if cannabis legalization legislation does not pass both houses of Congress, there is reason for cannabis investors to celebrate. The Senate passed legislation sponsored by two Democrats and one Republican to widen the scope of medical and scientific research pertaining to cannabis and its potentially life-saving compounds.
The purpose of the legislation passed earlier this week is to eliminate the bureaucratic red tape applicable to the cannabis research process. The hope is that the legislation will pave a path for cannabis-derived medications to receive FDA approval and reach patients sooner rather than later.
Cannabis Stocks Move In Response To The News
The progress detailed above sent publicly traded cannabis companies to new heights. Shares of cannabis companies in the United States and Canada jumped upwards of 15% as investors became that more bullish about expanding the United States market to recreational users across the land.
The cannabis stock rally is important as it comes on the heels of the sector dipping in recent months. Though the sector moved higher in November after Nancy Mace, a Republican from South Carolina, introduced the States Reform Act for cannabis regulation, the overarching industry trend was downward up until this week.
Is Now The Time To Invest In Cannabis Stocks?
Though no one can predict the future, it appears as though there is growing sentiment at the federal level to facilitate the growth of the cannabis industry. Mace and several other members of Congress voted in favor of the SAFE Banking Act that would empower cannabis companies to do businesses with banks and accept credit card payments instead of being limited to cash transactions.
Though the SAFE Banking Act didn’t make it through the Senate, there is hope in the form of Senator Chuck Schumer’s bill. Cannabis probably won’t be legalized for recreational use across the United States within the months ahead. However, there is the potential for additional states to legalize the plant. If cannabis stocks dip next week or in the ensuing weeks when it becomes clear that the plant will not be legalized for nationwide recreational use, cannabis investors will have some fantastic buying opportunities.