(Reuters) – Cannabis stocks soared on Wednesday when Democrats won a major US Senate race in Georgia and led another, approaching an impressive sweep that would give them control of Congress and the power to comply. his promise to legalize marijuana.
The shares of Aphria Inc ,, Hexo Corp and Cronos Group listed in the USA rose between 10.4% and 13%.
Marijuana stocks have soared since Joe Biden’s victory in the U.S. presidential election in November and the increased demand for marijuana during coronavirus blockages.
Vice President-elect Kamal Harris’ promised to decriminalize marijuana, which would remove it from the list of classified substances. But with Republicans gaining control of the Senate in the November elections, the approval of acts to decriminalize it looked bleak.
Although marijuana has been legalized in some states, its use is still illegal at the federal level. Importing marijuana into the United States from other countries, or even between states, is prohibited and institutions governed by the federal government, such as banks, may even be accused of money laundering if they work with marijuana growers.
Democrat Raphael Warnock’s victory over Republican incumbent Kelly Loeffler and Jon Ossoff’s leadership over incumbent David Perdue on Wednesday would give Democrats the power to advance President Joe Biden’s political goals.
“Given that Democratic President-elect Joe Biden will take office later this month, and the House remains controlled by Democrats – a Democratic sweep could pave the way for more progressive cannabis legislation to be passed,” said Aaron Gray of Alliance Global Partners on a Note.
Reporting by Arunima Kumar in Bengaluru; Shinjini Ganguli Edition