Marijuana Moment reported that cannabis stocks surged in late-afternoon trades on Thursday after Congress scheduled a vote to federalize the drug.
The Marijuana Opportunity, Reinvestment and Expungement act is a bill that would remove cannabis from the list of controlled substances. The bill would be sent to the Senate for approval before it was sent to the president for his signature.
Tilray and Sundial's shares were up nearly 20%. In Thursday trades, the Alternative Harvest ETF was up more than six percent.
The legalization of marijuana is an issue that has gained bipartisan support, but there is uncertainty as to whether President Biden will be in favor of signing it.
Senate majority leader Chuck Schumer has been lobbying Biden to change his mind on the legalization of marijuana.
According to Marijuana Moment, the Rules Committee will take up the measure in a Monday afternoon meeting to prepare it for floor action, which includes determining which amendments will be allowed to advance for consideration. The bill was sponsored by Congressman Jerrold Nadler.
The MORE act passed in the House in December of 2020 with five Republicans voting in favor of it. If the bill makes it to the Senate and is signed into law by President Biden, it will be clear that commercialization efforts will take time to get set up in a legal environment.
In 18 states, marijuana is legalized for recreational use. The geographical target market for marijuana growers, refiners, and distributors would double if the drug were legalized at the federal level.
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