Shares of Canadian cannabis companies continued to soar on Thursday in response the Democrats gaining control of the U.S. Senate.
“Federal cannabis reform will be accelerated and greater clarity on the regulatory path forward with Democratic control of the US Senate. In particular, we look for the near-term passage of the SAFE Banking Act (federal cannabis banking reform) in 2021,” said Echelon Capital analyst Andrew Semple in a research note. “We also believe it is likely that progress will be made on the MORE Act (federal cannabis decriminalization, among other important provisions) towards the latter half of 2021 or possibly later if COVID-19 requires additional attention from lawmakers.”
Pot stocks have rallied since Joe Biden’s victory in the U.S. presidential elections in November and higher demand for pot during the coronavirus-led lockdowns.
Vice President-elect Kamala Harris’ has promised pot decriminalization, which would remove it from the classified substances list. But with Republicans gaining control of the senate in November elections, the passage of acts to decriminalize it, had looked bleak.
While marijuana has been legalized in some states, its use is still illegal at a federal level. Import of marijuana into the U.S. from other countries, or even across states, is prohibited and federally governed institutions, like banks, can even be charged with money laundering if they work with marijuana growers.