Marijuana stocks took off after a new bill leaked looking to legalize cannabis in the U.S.

Written by on 15 November, 2021

Cannabis stocks are soaring amid news of a Republican-led bill seeking to legalize and tax marijuana at the federal level in the United States.

That’s right, both U.S. and Canadian cannabis stocks have soared since Marijuana Moment first reported the existence of the legislative proposal.

The potential bill drafted by South Carolina House Rep. Nancy Mace, R-S.C., to declassify and regulate the illegal substance at the federal level “could be a game-changer for the cannabis industry”. Amplify Seymour Cannabis ETF (CNBS) portfolio manager and CNBC contributor Tim Seymour told ETF Edge.

Removing cannabis from Schedule I of the Controlled Substances Act would make it legal in the United States.

″This is good news for a market that was not expecting declassification or a federal outcome potentially before the midterm elections and something that is clearly in the cannabis stock price”, said Seymour.

“This announcement has immediately sent a sector that’s amid a ferment up, and it may have reset a lot of those charts”, he said.

Seymour anticipates that big players in the sector, such as Trulieve and TerrAscend, could impress with their upcoming earnings reports.

Between earnings season, legalization hopes, potential M&A activity heating up, and valuations resetting, cannabis stocks could continue their ascent, noted the founder and chief investment officer of Seymour Asset Management.

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