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Cannabis Industry Surges as House Passes Bill to Lift Ban on Federal Level

The House passed a bill intended to lift the federal ban on cannabis, which led to a boost to marijuana-related stocks. 

Analysts have noted several positives for the industry such as a steady rise in sales, good cost control, and a minute bump around the vaping crisis controversy, suggesting the fears around the newer method of use were relatively minimal and will have long-lasting effects. 

The House Judiciary Committee voted in favor of the Expungement Act and Marijuana Opportunity Reinvestment, which, if it goes through both sides of the legislative branch, will remove the federal ban on cannabis and expunge past marijuana-related convictions. 

Committee Chairman Jerrold Nadlet, a New York Democrat, introduced the bill, which was passed on Wednesday by a 24-10 vote in favor. “The Senate will take its own time, but then the Senate always does,” Nadler said at a press conference on Tuesday to introduce the bill. He also aimed to sound upbeat ahead of Wednesday’s markup session for the bill: “The energy and the political pressure from the various states is growing rapidly. The Senate is subject to that, too. We’ll accomplish this.”

Cannabis stocks are back on the rise after experiencing a steep drop in stock prices. Companies in this space are still figuring out how to operate, cutting costs, revising deal terms, and weighing potentially selling assets as the legal market is developing slower than originally projected.

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