The House Just Passed Bill to Legalize Cannabis

by | Apr 1, 2022 | Stocks to Watch

Cannabis stocks could see higher highs.

Earlier today, the House passed legislation that could legalize cannabis in the U.S.

According to CNBC, “The legislation, dubbed the Marijuana Opportunity Reinvestment and Expungement Act, passed in the House last year, but did not move forward in the Senate. In addition to decriminalizing marijuana at the federal level, the bill would establish procedures for expunging previous convictions from people’s records and impose a tax on the sale of cannabis products.”

It now goes to the Senate, where it could face resistance.

At the moment, “Prospects for passing such a bill in the Senate appear to be low because Democrats would need all of their members and 10 Republicans to overcome a 60-vote hurdle needed to advance to a final vote,” added CNBC.

If we see progress on federal legalization, related stocks could explode to higher highs, such as Canopy Growth (CGC), Tilray (TLRY), and Aurora Cannabis (ACB).  Even ETFs like the ETFMG Alternative Harvest ETF (MJ) could push higher on a positive outcome.

We already know a majority of the public wants to see legalization.

According to Pew Research, 91% of Americans now say cannabis should be legal, adding, “As more states, including Virginia and New York, continue to legalize marijuana, an overwhelming share of U.S. adults (91%) say either that marijuana should be legal for medical and recreational use (60%) or that it should be legal for medical use only (31%). Fewer than one-in-ten (8%) say marijuana should not be legal for use by adults.”

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