Vice President Kamala Harris further positioned herself as a pro-cannabis candidate in an interview with the sports and culture podcast “All the Smoke” on Monday — but industry leaders aren't convinced her administration would deliver the reforms she promised .
“I just think we're at a point where we need to understand that we need to legalize it and stop criminalizing this behavior,” Harris said during the interview.
This was the first time she spoke publicly about the issue since becoming the Democratic presidential nominee.
“I am encouraged by Vice President Harris' support for cannabis legalization; however, we need real action, not just rhetoric,” said Jason Wild, executive chairman of the Toronto Stock Exchange-listed cannabis company. TerrAscendthat has activities in the United States. “I hope that this time these campaign promises are not just sound bites, but will lead to tangible changes.”
Four years earlier, as a senator and candidate for president in 2020, Harris advocated legislation to decriminalize and tax cannabis at the federal level. Biden also tapped her as vice president to lead discussions on criminal justice and cannabis reform as his administration worked to realign cannabis.
But the process is slow, says Brady Cobb, founder of Florida-based Sunburn Cannabis.
“I question the claim that Harris is the more pro-cannabis candidate,” Cobb said. “While the recast has made progress and if passed would be the largest step forward in federal cannabis reform to date, the fact remains that it has not been completed.”
The Biden administration said this spring that it would take steps to ease restrictions by reclassifying cannabis from the strictest Schedule I to the less strict Schedule III, which would open the door for studies and research, as well as greater sales and distribution of medical supplies in states. where it is legal.
In July, the public comment period on cannabis reclassification ended with a significant 43,000 comments submitted for review. In August, the Drug Enforcement Administration further delayed the reclassification by scheduling a hearing on the proposed rule change for December 2, after the election.
Cannabis investors are eager to hear more details about future proposals.
“We would like to hear more from the Harris campaign on how they envision reforms in this area, as several pathways need improvement, including banking and capital markets reform,” said Emily Paxhia, co-founder of Poseidon Investment Management.
The cannabis industry is also skeptical of former President Donald Trump's support for legalization.
“Trump also didn't point the ball at cannabis during his time as president, they say [Trump and Harris] are very equal on this issue from my point of view,” Cobb said.
In late August, Trump deviated from his usual position that cannabis legalization should be left up to each individual state. He said his administration, if elected, will continue to focus on research to unlock marijuana's medical uses as a Schedule 3 drug, and work with Congress to pass common sense laws, including safe banking for state-licensed businesses, and supporting states' rights to pass marijuana laws.”
He also said he plans to vote “yes” on a ballot measure in Florida to legalize the use of recreational cannabis.
The AdvisorShares Pure US Cannabis ETFwhich tracks U.S. companies exposed to cannabis, is up 12% since Trump made those comments a month ago, as investors see bipartisan support for legalization as a major boost.
“The fact that both Republican and Democratic presidential candidates now support federal cannabis reform increases the likelihood that federal cannabis legalization is only a matter of time,” Bernstein analyst Nadine Sarwat said in a recent note.
While candidate support has boosted the market, Bernstein also noted that growth in the category is stagnant as it faces macroeconomic headwinds.
“Despite all the headlines about possible federal reforms, sales performance at the state level is sobering,” Sarwat said.
