Stock Market

Cannabis Stocks Surge as Biden Moves to Reclassify Marijuana ASAP

Cannabis stocks soared nearly across the board this afternoon on news that President Joe Biden’s administration is moving to reschedule marijuana as a Schedule III substance, a less severe designation than its prior Schedule I classification. Indeed, acting on a review from the Department of Health and Human Substances, the U.S. Drug Enforcement Administration (DEA) and U.S. Justice Department may recategorize cannabis as early as this week.

A move to Schedule III would yield major benefits to both the legalization and commercialization of pot. Indeed, Schedule III would categorize cannabis alongside the likes of Tylenol with codeine and some kinds of steroids. Schedule I drugs, which cannabis has been classified under for the past 50 years, include the likes of LSD and heroin.

The rescheduling would also remove many of the taxes that cannabis companies face in the U.S. currently, a major barrier to growers operating in the country. Though, the move wouldn’t directly affect the plant’s legalization in the United States.

“The profound impact of rescheduling cannabis from Schedule I to Schedule III would signify a crucial shift in the perception of cannabis, recognizing its medical potential and solidifying its legitimacy in the financial realm,” said Sundie Seefried, CEO of Safe Harbor Financial.

As you might imagine, cannabis stocks have responded extremely positively to the news. Canopy Growth (NASDAQ:CGC) closed up by nearly 80% today, while Aurora Cannabis (NASDAQ:ACB) made a 46% jump.

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.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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