Cannabis stocks, including Canopy Growth (CGC), Curaleaf Holdings (CURLF), and Leafly Holdings (LFLY), got a boost in trading after a Marijuana Moment report stated that President Biden has been “very clear” about the “the legalization of marijuana for medical purposes.”
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During a White House Press briefing, when Press Secretary Karine Jean-Pierre was asked about the decriminalization of marijuana, she commented, “As we speak to legalization and the legal piece of it, as you’re asking me in your—in part of your question—so, look, the president has always supported the legalization of marijuana for medical purposes. He’s been very clear about that, where appropriate, consistent with medical and scientific evidence.”
Overall, major cannabis stocks have shot up over the past five trading sessions as the U.S. government reconsiders how it classifies marijuana. The U.S. Food and Drug Administration (FDA), and its parent agency Health and Human Services (HHS), have recommended “rescheduling” of cannabis from a Schedule I drug to a Schedule III status.
If the proposed change takes place, it would free cannabis companies from Federal taxes. This is because the Internal Revenue Service code ‘280E’ prohibits cannabis companies from deducting most of their expenses against federal taxes.
The rising interest in cannabis stocks has benefitted the AdvisorShares Pure Cannabis ETF (YOLO), which has soared by more than 30% over the past three months alone.