Cannabis stocks are on the rise today after some comments by Senate Democrats regarding legalization. Chuck Schumer and a constituency of cannabis supporters are pushing to get a federal bill passed as soon as possible. Meanwhile, New York joined the ranks of Washington and Colorado as the 15th state to legalize recreational cannabis.
Senate Majority Leader Chuck Schumer is reportedly drafting a bill with Oregon Sen. Ron Wyden and New Jersey Sen. Cory Booker. The bill will deescalate cannabis from the list of controlled substances. And, while it doesn’t specifically use the word “legalization,” it will give states the green light to draft their own legislation over the substance.
Democrat lawmakers’ pushes to draft marijuana legislation come in tandem with the huge news that New York is now the 15th state to legalize recreational cannabis. Gov. Andrew Cuomo is signing the bill Wednesday morning and says the state expects around $350 million in annual tax revenue from the law. The law also expunges marijuana-related convictions from records. This is a huge win for social equity, given racial disparities in arrests for marijuana-related offenses. In 2020, people of color represented 94% of all arrests. With this in mind, the New York Times reported that 46% of revenue from cannabis sales will go toward Black and Latino communities in New York.
Cannabis legislation is a longstanding partisan issue within Congress. However, legalization laws are passing in red states like Montana and South Dakota. It’s clear that some lawmakers are beginning to come around on cannabis. Democrats want to strike while the iron is hot to get this long-awaited legalization in place.
How the Big News Is Boosting Cannabis Stocks
All of this news has done wonders for cannabis stocks this morning. The industry has been long awaiting some news regarding legislation. Now, where stocks were slumping, they are now turning around and giving investors hope.
Some big winners among cannabis stocks today include names like Tilray (NASDAQ:TLRY), Aphria (NASDAQ:APHA) and r/WallStreetBets regular Sundial (NASDAQ:SNDL). Other gainers are OrganiGram (NASDAQ:OGI) and GrowGeneration (NASDAQ:GRWG).
TLRY stock, one of the fastest-growing companies in the cannabis industry right now, is seeing a 7% boost after the news. This is one of the best bets in the industry right now. APHA stock is also up by 7%, and is a great bet for investors as it prepares to merge with Tilray. SNDL stock, the cannabis option of choice for r/WallStreetBets, is seeing gains of 3% after all this news.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.