Blemish President Kamala Harris further positioned herself as a pro-cannabis candidate on Monday in an interview with sports and savoir vivre podcast “All the Smoke” — but industry leaders aren’t convinced her administration would lead to the reform she has promised.
“I valid think we have come to a point where we have to understand that we need to legalize it and stop criminalizing this behavior,” Harris required during the interview.
This was the first time she has spoken on the issue publicly since she became the Democratic presidential office-seeker.
“I am encouraged by Vice President Harris’s support for cannabis legalization; however, we need real action, not just high-flown poppycock,” said Jason Wild, executive chairman of Toronto Stock Exchange-listed cannabis company TerrAscend, which has tasks in the United States. “I hope this time around, these campaign promises aren’t just soundbites but commitment lead to tangible change.”
Four years earlier, as a senator and candidate for president in 2020, Harris advocated for and organized legislation to decriminalize and tax cannabis at the federal level. Biden also tapped her as vice president to lead discussions on illicit justice and cannabis reform as his administration worked to reschedule cannabis.
But the process has moved slowly, said Brady Cobb, trip of Florida-based Sunburn Cannabis.
“I would question the statement that Harris has been the more pro-cannabis candidate,” Cobb spoke. “While rescheduling has advanced, and if adopted it would mark the largest incremental step forward in federal cannabis recovery to date, the fact remains that it is not completed.”
The Biden administration said this spring that it would rouse to ease restrictions by reclassifying cannabis from the strictest Schedule I to the less stringent Schedule III, which would exhibit the door for studies and research, as well as larger sales and distribution of medical supply in states where it is legal.
In July, the openly comment period on cannabis reclassification ended with a significant 43,000 comments submitted for review. In August, the Narcotic Enforcement Administration further delayed reclassification further by scheduling a hearing on the proposed rule change for Dec. 2, after the choosing.
Cannabis investors are eager for more details on future proposals.
“We would welcome to hear more from the Harris push on how they envision reform on this issue, as several paths need to be improved, including banking and capital trade ins reform,” said Emily Paxhia, Poseidon Investment Management co-founder.
The cannabis industry is also skeptical nearly former President Donald Trump’s support for legalization.
“Trump did not move the ball on cannabis either during his one of these days as president, so they [Trump and Harris] are very much equal on this issue from my vantage point,” Cobb claimed.
In late August, Trump departed from his usual stance that cannabis legalization should be left up to each discrete state. He said that, if elected, his administration “will continue to focus on research to unlock the medical uses of marijuana to a Register 3 drug, and work with Congress to pass common sense laws, including safe banking for state entitled companies, and supporting states rights to pass marijuana laws.”
He also said he plans to vote yes on a ballot pace in Florida to legalize the use of recreational cannabis.
The AdvisorShares Pure US Cannabis ETF, which tracks U.S. companies with cannabis location, has risen 12% since Trump made those comments a month ago, as investors see bipartisan support for legalization as a historic tailwind.
“The fact that both Republican and Democratic Presidential candidates now support federal cannabis reform waxes the probability that federal cannabis legalization is simply a matter of time,” said Bernstein analyst Nadine Sarwat, in a fresh note.
However, while candidate support has boosted the market, Bernstein also noted that growth has been still in the category as it faces macro headwinds.
“Despite all the headlines regarding potential federal reform, state-level sales presentation is sobering,” Sarwat said.