Vice President Kamala Harris further positioned herself as a pro-cannabis candidate on Monday in an interview on the sports and culture podcast “All the Smoke,” but industry leaders said her administration will not implement the reforms she promised. I'm not convinced that it will lead to.
“I think we're at a point where we have to understand that we need to legalize this behavior and stop criminalizing this behavior,” Harris said during an interview.
This is the first time she has spoken publicly about the issue since becoming the Democratic presidential candidate.
Jason Wilde, executive chairman of Terra Ascend, a cannabis company listed on the Toronto Stock Exchange and operating in the United States, said, “Vice President Harris' support for legalizing cannabis is encouraging, but it's not just a rhetorical statement. We need action.” “This time, we hope that these campaign promises will lead to concrete change and not just sound bites.”
Four years ago, as a senator and 2020 presidential candidate, Harris advocated and introduced legislation to decriminalize and tax marijuana at the federal level. Biden also tapped her as vice president to lead discussions on criminal justice and cannabis reform as the administration works to reschedule cannabis.
But Brady Cobb, founder of Florida-based Sunburn Cannabis, said the process is moving slowly.
“I question the statement that Harris is a more pro-cannabis candidate,” Cobb said. “While the schedule changes are underway and, if adopted, would represent the biggest step forward in federal cannabis reform to date, the fact remains that we are not done yet.”
This spring, the Biden administration announced that it would move to ease regulations by reclassifying cannabis from the strictest Schedule I to the less strict Schedule III, which would allow states to conduct research, as well as drug sales and distribution. This will pave the way for expansion. If it's legal.
In July, the public comment period on cannabis reclassification ended with a whopping 43,000 comments submitted for review. In August, the Drug Enforcement Administration further delayed the reclassification by scheduling a public hearing on the proposed rule change on Dec. 2, after the election.
Cannabis investors are eager to hear more details about future offerings.
Emily Paxia, co-founder of Poseidon Investment Management, said: “It will be interesting to see what reforms the Harris campaign envisions on this issue, as several paths need to be improved, including reform of banks and capital markets. I would like to hear more details about what is going on.”
The cannabis industry is also skeptical of former President Donald Trump's support for legalization.
“Trump never weighed in on the marijuana issue during his presidency, so from my perspective they (Trump and Harris) are pretty much equal on this issue,” Cobb said. .
In late August, President Trump reversed his previous position that marijuana legalization should be left to each state to decide. If elected, he said his administration would “continue to focus on research to lift marijuana's medical use as a Schedule 3 drug, and implement common sense initiatives including safe banking for state-licensed businesses and assistance to states.” “We will work with Congress to pass legislation that will help.” The right to pass marijuana laws. ”
He also said he plans to vote in favor of a Florida ballot measure that would legalize recreational marijuana use.
The AdvisorShares Pure US Cannabis ETF, which tracks U.S. companies with exposure to cannabis, has seen President Trump's comments a month ago as investors see bipartisan support for legalization as a major boost. It has since risen 12%.
“The fact that both Republican and Democratic presidential candidates support federal cannabis reform suggests that federal cannabis legalization may be only a matter of time,” Bernstein analyst Nadine Sarwat said in a recent note. “We are increasing the
However, Bernstein also noted that while candidate support is driving the market higher, growth in the category has stalled as it faces macro headwinds.
“Despite all the headlines about potential federal reforms, the sales performance at the state level is sobering,” Sarwat said.
