Pot stocks and ETF are soaring today thanks to optimism generated by Jeff Sessions’ resignation and passing of marijuana legalization by three more states. Michigan voters approved a ballot measure that would allow recreational use of marijuana while Missouri and Utah passed initiatives to legalize medical use of marijuana. (Will Cannabis ETFs be on a High Again?)
Tilray (TLRY - Free Report) jumped more than 30% today, while Canopy Growth (CGC - Free Report) and Cronos (CRON - Free Report) were up more than 8%. The ETFMG Alternative Harvest ETF (MJ - Free Report) —the first and only US listed pot ETF—surged 7% today.
Sessions was seen as one of the biggest opponents of marijuana in the Trump administration. While Obama-era policy allowed pot legalization by states by following a hands-off approach, Sessions’ opposition had created a lot of uncertainty for cannabis businesses.
Banks usually follow federal guidelines that treat any transactions involving marijuana as money laundering. Thus, banks in general were reluctant to service cannabis businesses. (Pot Stocks & ETF: Risks and Rewards)
The defeat of Pete Sessions, the Texas Republican who according to CNBC.com blocked marijuana legislation several times while he was chairman of the House Rules Committee, also boosted the sentiment for pot stocks. Further, a Democrat controlled House would be much more supportive for the cannabis industry.
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