(Reuters) – Cannabis stocks rose on Wednesday as Democrats won a key U.S. Senate race in Georgia and led another, approaching an impressive sweep that would give them control of Congress and power to fulfill his promise to legalize the pot.
Shares in the United States listed by Aphria Inc, Hexo Corp and Cronos Group increased by 10.4% to 13%.
Boat stocks have risen since Joe Biden’s victory in the U.S. presidential election in November and increased pot demand during coronavirus-led closures.
Elected Vice President Kamal Harris has promised to decriminalize the pots, which would remove the list of classified substances. But with Republicans gaining control of the Senate in the November election, passing acts to decriminalize it had seemed bleak.
Although marijuana has been legalized in some states, its use remains illegal at the federal level. The importation of marijuana into the United States from other countries, or even between states, is prohibited, and federally governed institutions, such as banks, can even be accused of money laundering if they work with marijuana producers. .
Democrat Raphael Warnock’s victory over Republican Rep. Kelly Loeffler and Jon Ossoff’s leadership over incumbent David Perdue on Wednesday would give Democrats the power to advance the political goals of President-elect Joe Biden.
“As Democratic President-elect Joe Biden takes office later this month, and the House will remain controlled by Democrats: a democratic process could pave the way for more progressive cannabis legislation to be passed.” , said Aaron Gray of Alliance Global Partners. note.
Reports of Arunima Kumar in Bengaluru; Edited by Shinjini Ganguli