Harris, the pro-cannabis candidate. The industry is not convinced

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Vice President Kamala Harris further positioned herself as a pro-cannabis candidate Monday in an interview with the sports and culture podcast “All the Smoke” – but industry leaders are not convinced her administration would lead to reform she promised.

“I just think we’ve gotten to a point where we have to understand that we have to legalize this and stop criminalizing this behavior,” Harris said in the interview.

It was the first time she had spoken publicly on the issue since becoming a Democratic presidential candidate.

“I am encouraged by Vice President Harris’ support for cannabis legalization; however, we need concrete actions, not just nice words,” said Jason Wild, executive chairman of a cannabis company listed on the Toronto Stock Exchange. TerrAscendwhich operates in the United States. “I hope that this time, these election promises will not be mere sentences but will lead to tangible changes.”

Four years earlier, as a senator and presidential candidate in 2020, Harris advocated and introduced legislation to decriminalize and tax cannabis at the federal level. Biden also appointed her as vice president to lead discussions on criminal justice and cannabis reform as his administration worked to reschedule cannabis.

But the process has moved slowly, said Brady Cobb, founder of Florida-based Sunburn Cannabis.

“I question the assertion that Harris was the most pro-cannabis candidate,” Cobb said. “While the rescheduling has progressed and, if enacted, would mark the largest step forward in federal cannabis reform to date, the fact remains that it is not complete.”

The Biden administration announced this spring that it would ease restrictions by reclassifying cannabis from the stricter Schedule I to the less strict Schedule III, opening the door to studies and research, as well as greater sales and distribution of medical supplies within the states. where it is legal.

In July, the public comment period on the reclassification of cannabis closed with 43,000 comments submitted for review. In August, the Drug Enforcement Administration further delayed the reclassification by scheduling a hearing on the proposed rule change for December 2, after the election.

Cannabis investors are eager for more details on future proposals.

“We would be happy to hear more from the Harris campaign on how they are considering reform on this issue, as there are several avenues for improvement, including reform of the banking sector and capital markets,” said Emily Paxhia, co-founder of Poseidon Investment Management.

The cannabis industry is also skeptical of former President Donald Trump’s support for legalization.

“Trump also didn’t move the ball on cannabis during his time as president, so they [Trump and Harris] We’re pretty much equal on this issue, from my perspective,” Cobb said.

In late August, Trump departed from his usual position that cannabis legalization should be left to the discretion of individual states. He said that, if elected, his administration “will continue to focus on research to unlock the medical uses of marijuana as a Schedule 3 drug, and work with Congress to pass legislation to common sense, including secure banking for state-licensed businesses, and supporting states’ rights to pass marijuana laws.

He also said he plans to vote yes on a Florida ballot measure to legalize the recreational cannabis use.

THE AdvisorShares Pure American Cannabis ETFwhich tracks U.S. companies with exposure to cannabis, has risen 12% since Trump made the comments a month ago, with investors seeing bipartisan support for legalization as a significant tailwind.

“The fact that both Republican and Democratic presidential candidates now support federal cannabis reform increases the likelihood that federal cannabis legalization is only a matter of time,” Bernstein analyst Nadine Sarwat said in a note. recent.

However, while support for candidates has boosted the market, Bernstein also noted that growth is stagnating in the category due to macroeconomic headwinds.

“Despite all the headlines about potential federal reform, sales performance at the state level is sobering,” Sarwat said.

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