(Reuters) – Cannabis stocks rose on Wednesday as Democrats won a key U.S. Senate race in Georgia and led another move, approaching an astonishing sweep that would give them control of Congress and power to act in accordance with their promise to legalize the pot.
US-listed shares of Aphria Inc., Hexo Corp and Cronos Group increased between 10.4% and 13%.
Pot stocks have rallied since Joe Biden’s victory in the November US presidential election and higher pot demand during coronavirus-driven blockages.
Elected Vice President Kamal Harris promised a decriminalization of the vessels, which would remove it from the list of classified substances. But when Republicans gained control of the Senate in the November election, the adoption of decriminalization acts seemed bleak.
While marijuana has been legalized in some states, its use is still illegal at the federal level. The import of marijuana into the United States from other countries, or even from states, is banned, and federally governed institutions, such as banks, may even be charged with money laundering if they work with marijuana growers.
The victory of Democrat Raphael Warnock’s victory over Republican incumbent Kelly Loeffler and Jon Ossoff’s leadership over incumbent David Perdue on Wednesday would give Democrats the power to advance the political goals of President-elect Joe Biden.
“Given Democrat President-elect Joe Biden will take office later this month, and the House remains controlled by Democrats – a democratic sweep could pave the way for more progressive cannabis legislation,” said Aaron Gray of at Alliance Global Partners Note.
Report by Arunima Kumar in Bengaluru; Montage of Shinjini Ganguli