Cannabis stocks rose Thursday after Bloomberg reported that Senate Democrats will file a federal decriminalization bill next week.
Sources told Bloomberg that Majority Leader Chuck Schumer worked with Senators Cory Booker (D-NJ) and Ron Wyden (D-Oregon) on the bill. They have made adjustments to the current draft bill that was circulated last year.
De shares of Tilray Brands rose a whopping 20%, while Aurora Cannabis peaked 10% and Canopy Growth climbed 7%. The slow pace of federal legalization efforts has not done the industry any good.
Cannabis Administration and Opportunity Act
The bill, called the Cannabis Administration and Opportunity Act, would remove marijuana from the Controlled Substances Act, which classifies marijuana as a List-1 narcotic. It would still allow states to maintain or enact manufacturing and distribution bans, according to Bloomberg.
The bill would also provide grants to underserved communities to enter the recreational marijuana market. The House already voted in April to decriminalize marijuana, ban previous convictions and tax new cannabis businesses.
The legislation has a good chance of succeeding if it reaches Senate Republicans, as the bill likely needs at least 60 votes to pass the evenly divided chamber.
Source: markets.businessinsider.com (EN)
