Changes expected on Capitol Hill are giving cannabis investors reason to celebrate
The elections this week in the state of Georgia and the subsequent election of the two democratic candidates to replace the two republican incumbents has changed the face of what will now be possible to accomplish in the United States now that Mitch McConnell is no longer standing up to block anything and everything put forward by the Democratic Party. The results of the Georgia elections have naturally had a positive effect on the stock exchanges in New York and Toronto. The Canadian cannabis industry is also highly affected by what happens in the American congress as there are several large and prosperous cannabis companies operating there already.
As a result of the elections, many cannabis companies have seen their stocks increase. Among these are Aurora Cannabis, Tilray, Cronos Group, Hexo, Aphria and others. Increases have ranged from less than 1% to as much as 7%.
Going forward, Mitch McConnell will take his seat on the Senate floor and a new Senate Majority Leader will be elected to take his place. McConnell will return to his former post of Senate Minority Leader and will no longer be in the position to block legislation on his own initiative.
A Canaccord analysts recently wrote, “The Democratic Party will now effectively control the House, the Senate and the White House, which could pave the way for a number of pro-cannabis initiatives that have been bottlenecked in the House of Representatives to begin working their way through applicable political/legislative channels.”
The legislation referred to here is the MORE Act, shorthand for the Marijuana Opportunity, Reinvestment and Expungement Act, which proposes, among other things, the decriminalization of cannabis at the federal level. The measure pass the house a couple of weeks ago and sent on to the Senate where it was likely put on the bottom of Mitch McConnell’s ‘to do’ list. Vice president-elect Kamala Harris will be in charge of getting that legislation through the Senate and over to President Joe Biden’s desk.