Cannabis research reform in the US is having a positive impact on industry stocks

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Cannabis stocks are responding well to federal approval of cannabis research expansion

A few days ago, it was reported that President Joe Biden put his signature on a historic bill for the US government. The cannabis measure, the first to reach a federal level in the country’s history, would expand cannabis research. The news was shared late last week, and since then, experts have said that cannabis stocks could find a potential upside.

Through the Medical Marijuana and Cannabidiol Research Expansion Act, the country’s scientists and researchers will be able to make the process of studying the plant much more manageable and effective. The measure instructs the Department of Health and Human Services (DHHS) to investigate policies that inhibit adequate marijuana research.

Entering the week, after the news spread through the market, stocks suddenly saw a remarkable surge. For example, companies such as Australis Capital, Planet 13 Holdings and Jushi Holdings saw their shares rise 15%, 5.6% and 6.8%, respectively.

The passage of this law also creates a more efficient avenue for researchers to order larger quantities of cannabis for research purposes. The law was pushed by Republican and Democratic lawmakers with opposing views on cannabis regulation at the federal level.

Since it is not a bill to regulate or decriminalize cannabis use, but rather to reduce barriers to research, this has allowed it to move forward with broad bipartisan support. The benefit also goes to all those cannabis industries, especially those focused on medical cannabis. Many of their scientists will be able to have a freer path to develop new research that will help human health.