Canopy Growth (NASDAQ:CGC) stock closed up 17.1% to start the week after Sunday’s surprise announcement that President Joe Biden will step down from the 2024 election, instead supporting his current vice president, Kamala Harris. Investors are taking this as a win for Canopy Growth and its peers.
This is largely because of Harris’ pro-legalization stance on cannabis. If you recall, Harris has been publicly pro-cannabis since first joining the ticket with Biden. On a podcast in 2019, Harris even confirmed having tried the green plant in the past. It seems cannabis investors are taking that to the bank today.
During the last election cycle, at the vice presidential debate between Harris and Mike Pence, she promised their administration would “decriminalize marijuana, and we will expunge the records of those who have been convicted of marijuana.”
While the Biden administration hasn’t gone quite that far, there have at least been some attempts at reform.
Back in May, the Department of Justice, acting with support from the president, published a Notice of Proposed Rule Making that seeks to reschedule cannabis from a Schedule I drug with “no currently accepted medical use and high potential for abuse,” to a Schedule III drug, one “with a moderate to low potential for physical and psychological dependence.”
While the change hasn’t yet been finalized, it would have a substantive effect on regulations surrounding cannabis in the country.
Canopy Growth Stock Climbs on Potential Harris Presidential Bid
While this isn’t exactly a direct win for Canopy Growth, if Harris win the presidency in November, which, according to recent polls is quite a big if, the chances of cannabis being entirely decriminalized is likely better than if a Republican took office.
Canopy Growth has taken a number of steps to give itself an advantage should the U.S. cannabis market really open up. It has already launched a Canopy USA business that may swallow up some smaller cannabis makers into a sort of super pot company.
Investors should also note that Canopy Growth is joined by peers Tilray (NASDAQ:TLRY), Cronos Group (NASDAQ:CRON), and Aurora Cannabis (NASDAQ:ACB), each of which is enjoying a strong day in the market thus far.
Whether today’s jump marks a precursor to a decriminalized cannabis in the country, remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
