The marijuana sector got a substance boost earlier this week. During the vice presidential debate on Oct. 7 Democratic VP candidate Kamala Harris said that a Biden-Harris administration would decriminalize marijuana possession as well as expunge the criminal records of those convicted of marijuana-related crimes.
Next day, marijuana stocks rose.
And Twitter responded.
CannabisNursesofColor(CNOC) @CannanursesCNOC tweeted: “We agree, Senator!”
Slumdog Trader @SdmTraderUS tweeted “#PotStocks appear like they are about to go on a huge multi-day run.”
But another user referenced Harris hard-on-crime record as California Attorney General. Chad Kapphahn @Cjk317 tweeted: “Wouldn’t that undo a large portion of her convictions as California AG”
Still, most tweets were celebratory. topo @topo_tron tweeted: “Thank you @KamalaHarris for mentioning decriminalizing marijuana #PotStocks”
In fact, stocks across the cannabis sector moved up, and the best-known cannabis producers enjoyed nice gains.
Why? What Harris said was “something U.S. marijuana investors have been hoping to see for a long time. Currently, marijuana remains illegal at the national level, although federal authorities have generally avoided seeking to prosecute people in states that have approved marijuana for medicinal or recreational use,” The Motley Fool reported.
Still, many marijuana companies have been struggling during the coronavirus pandemic.
But the statement from Harris gave the industry hope of federal legalization. Already cannabis legalization has happened in 11 states plus Washington, D.C.
Despite this, banks and other traditional financial institutions have for the most part refused to work with the industry as cannabis is still a classified substance at the federal level.
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“Access to safe banking will transform the industry, freeing up capital markets for investment and reducing the risk of operating a cannabis business,” said Keith Cich, co-founder of cannabis-related products manufacturer Sunderstorm Inc., told Reuters.
