Cannabis stocks soared this week, riding the blue wave that washed over the state of Georiga. Two run-off Senate races saw a Democratic sweep, cementing majority control for the party. The Rev. Raphael Warnock and Jon Ossoff won their campaigns, flipping the Senate for the first time since 2011.
The news sent an ecstatic wave through the cannabis community. The fate of the MORE Act, which would remove the plant from its Schedule I status (effectively legalizing it) lies in a Senate vote. The U.S. House of Representatives already approved the measure in early December. Under a Republican-controlled Senate, the bill was likely dead on arrival but with Democratic leadership, its approval is far more likely.
“Despite all of our progress in 2020, with ballot initiative victories and the historic passage of the MORE Act in the House of Representatives, there remained one huge roadblock to finally ending federal prohibition and that roadblock was named Mitch McConnell,” NORML Executive Director Erik Altieri said in an interview with L.A. Weekly.
“With Democrats in charge of the upper chamber, many of our closest allies in the Senate will take over chair positions on key committees and Senator Chuck Schumer, who has already pledged to schedule hearings and votes for crucial marijuana legislation should his party take power, as majority leader, we couldn’t be in a better position to achieve true federal reform in 2021.”
Canadian cannabis producers saw huge gains midday after the election. Tilray stock jumped as much as 19.1% while Aurora Cannabis and Canopy Growth soared 16.5% and 17.7%. The AdvisorShares U.S. multi-state operator focused ETF closed about 6% higher while the Canadian focused Alternative Harvest ETF finished the day up about 7%.
Pot stocks saw huge gains last November after reform initiatives passed in five states, signaling yet again a shift in public attitudes toward cannabis, regardless of political affiliation. The wins in Georgia only seem to solidify the likelihood of nationwide legalization sooner than later, which should bode well for public and private marijuana firms alike.