Shares of Canopy Growth (CGC), Tilray Brands (TLRY), and other cannabis companies experienced significant gains during intraday trading on Monday, driven by former President Donald Trump’s recent statements advocating for marijuana reform.
Trump, the Republican presidential candidate, voiced his support for reducing marijuana restrictions on his social media platform, Truth Social. He argued for an end to the “needless arrests and incarcerations of adults for small amounts of marijuana for personal use” and expressed his intention to push for a reclassification of marijuana to Schedule III if re-elected. Trump also promised to collaborate with Congress to implement pragmatic reforms, including safe banking measures for state-authorized cannabis businesses.
Trump Endorses State Marijuana Legislation
In his statement, Trump emphasized his support for states’ rights to enact their own marijuana laws. He revealed that he will vote in favor of a constitutional amendment in Florida this November, which seeks to legalize marijuana use for individuals aged 21 and older. Trump has previously predicted that the amendment, known as Amendment 3, will pass, criticizing the current approach to enforcing marijuana laws as wasteful and damaging.
Trump’s stance aligns with the views of Vice President Kamala Harris, who has also expressed opposition to the incarceration of individuals for simple marijuana possession.
Cannabis ETFs See Significant Uptick
The AdvisorShares Pure U.S. Cannabis ETF (MSOS), the largest exchange-traded fund (ETF) focused on cannabis stocks, saw its shares jump more than 9% by midafternoon Monday, reflecting the positive market reaction to Trump’s comments.
