By Dean Seal
Shares of cannabis stocks have a strong start to the week after former President Donald Trump said he would support marijuana overhaul, easing concerns that he might undo the Biden administration's efforts to loosen regulations if he wins the presidency in November.
AdvisorShares Pure US Cannabis, a popular exchange-traded fund tracking marijuana stocks, was up 10% at $7.08 on Monday. The two biggest U.S. cannabis companies by market capitalization, Curaleaf Holdings and
Green Thumb Industries, were up 12% and 8.8% respectively.
The stocks of other big cannabis companies, including
Tilray Brands, Verano Holdings and
Trulieve Cannabis, were up 6% to 12%.
Trump said Sunday night in a post on his social-media website Truth Social that he supports federally reclassifying marijuana as a less dangerous drug, as the Department of Health and Human Services has recommended. The Drug Enforcement Administration is reviewing a proposal to do so, with a hearing scheduled for Dec. 2.
The agency's scheduling of the hearing past Election Day roused concerns that a new president might disrupt the Biden administration-led overhaul. Vice President Kamala Harris, the Democratic nominee, has vowed to be a strong pro-pot advocate if elected.
Trump is now doing the same, adding in his post that he planned to vote in favor of legalizing cannabis in Florida, his adopted home state, when it is on the ballot this fall. Trump further said that he wanted to end arrests and incarcerations of adults for possessing small amounts of marijuana for personal use.
David Culver, the senior vice president of public affairs at the U.S. Cannabis Council, said in a statement that he looked forward to hearing more from Trump about how he would approach cannabis reform if elected.
"For the first time in history, both major party candidates support large-scale cannabis reform," Culver said.