In a bold pre midterm move, Joe Biden has announced via Twitter his action plan for cannabis reform. Just a few weeks ago the White House said they‘’don’t have anything to speak to’’ on cannabis action, pointing to Biden’s use of clemency as proof he’d made any progress on his campaign promises.
Biden began the Twitter thread reiterating his campaign stance, saying “no one should be in jail just for using or possessing marijuana.”. Rounding off the thread Biden recruited to the action and recognized the disparity in how these unjust laws have affected people of color.
Speaker at this year’s Business of Cannabis New York, Khadijah Tribble, released the following statement “ This is a particularly cathartic moment for Black and brown communities that have been disproportionately impacted by the criminalization of cannabis.”
What happens now?
Biden’s action plan hit three key points.
- The pardoning of all prior federal offenses of simple cannabis possession. Removing the burden of a criminal record for thousands of people.
- The call for governors to pardon simple state marijuana possession offenses.
- A direct request to Secretary Xavier Becerra and the Attorney General to initiate the process of reviewing how cannabis is scheduled under federal law.
Hope for federal legislation
Currently, 19 states, comprising 44 percent of the U.S. population, have legal adult-use cannabis markets. With another 5 on the ballot for midterm elections, about half of the US population will reside in a jurisdiction where the possession and use of cannabis are legal for adults. It seems inevitable that as more states legalize, federal law will have to follow-but that’s not a given.
Off the back of the news, cannabis companies have seen huge stock price surges, similar to the share price rises post legalization in Canada back in 2018, although many stock prices have not yet returned to this 2018 peak even with Biden’s announcement.
- Tilray Brands (TLRY.O) was up 20%
- Canopy Growth (WEED.TO ) was up 31%
- Curaleaf (CURLF) was up 33%
- Cronos Group (CRON) up 13%
- Green Thumb Industries (GTII) up 31.85%
The move, although not directly affecting the regulations companies operate under, is a positive and promising move for the industry. Confidence that federal legalization is just around the corner is enough to attract investment. But with cannabis bills, like the SAFE act, bouncing back between the Senate and the House, and no real change at a federal level since the beginning of Biden’s term, it may be optimistic to think any of it will happen quickly.
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Join us at this year’s Business of Cannabis: New York as we discuss what these new reforms mean for consumers and companies in New York.
