Canadian marijuana stocks that trade on major U.S. exchanges fell after the House voted to pass the MORE Act, which would remove marijuana from the list of controlled substances. Does that make those marijuana stocks good buys now?
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The vote, in early December, came after New Jersey, Arizona, Montana and South Dakota on Election Day approved ballot measures to legalize recreational marijuana. South Dakotans also backed creating a medical marijuana program for people with severe medical conditions. Mississippi voters approved legalizing cannabis for medical use.
After President-elect Biden’s transition formally began, marijuana stocks jumped again. Biden has said he supports federal marijuana decriminalization.
Cannabis-industry executives have also predicted a domino effect — with newly legal states pressuring neighboring states to legalize in an effort to prevent a flight of tax revenue. And they say more legal states increases the likelihood the government takes action to roll back restrictions on a national level.
Still, the MORE Act faces little hope in the Senate. The bill decriminalizes cannabis on a federal level but lets states decide their own laws. Other legal reform could be dampened if the GOP holds onto the Senate, where two runoffs set for January will ultimately determine the balance of the chamber. The marijuana industry’s finances are, in many…
