12 State Attorneys General To DEA: Reschedule Marijuana To 'Defend Public Safety,' Cannabis Stocks Jump
Portfolio Pulse from Maureen Meehan
Twelve Democratic state attorneys general have urged the DEA to reclassify marijuana from Schedule I to Schedule III, citing public safety and economic benefits. The move could ease federal restrictions and allow legal cannabis businesses to access federal tax deductions. Cannabis stocks and ETFs surged on the news, with the AdvisorShares Pure US Cannabis ETF (MSOS) and the ETFMG Alternative Harvest ETF (MJ) experiencing significant gains.
January 12, 2024 | 9:19 pm
News sentiment analysis
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POSITIVE IMPACT
The ETFMG Alternative Harvest ETF (MJ) gained 4.6% to $3.41 on the prospect of marijuana rescheduling by the DEA, as advocated by 12 state attorneys general.
The increase in MJ's stock price is a direct response to the potential regulatory changes that could benefit the cannabis industry, as indicated by the attorneys general's letter to the DEA.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
The AdvisorShares Pure US Cannabis ETF (MSOS) saw a 10.22% increase to $8.20 following the news of the attorneys general's push for marijuana rescheduling.
The positive reaction in the stock price of MSOS is directly attributable to the news of the attorneys general's request to the DEA, which could lead to a more favorable regulatory environment for cannabis businesses.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90