USA: Cannabis stocks soar after Joe Biden announces pardon and review of cannabis classification

The President of the United States of America (USA), Joe Biden, surprised the world yesterday, when he revealed his intention to fulfill the promises made during the election campaign: he asked the federal authorities to start a process of reviewing the classification of cannabis, from accordance with federal law, and announced the pardon of all offenses for the possession and consumption of the plant. following the statement issued by the White House, shares of publicly listed cannabis companies soared.

According to Reuters, Tilray Brands (TLRY.O) and Canopy Growth Corp (WEED.TO) shares soared 22% and 31%, respectively.

Curaleaf (CURLF) soared 33% while MedMen Entreprises Inc. (MMNFF) rose 20%.

For its part, Cresco Labs (CRLBF) rose 24% and the ETFMG Alternative Harvest ETF (MJ.P), which includes shares of several cannabis companies, also increased by almost 20%.

The beginning of the end of the “War on Drugs”?
Currently, cannabis falls under the same classification as heroin and LSD, as a more dangerous substance than fentanyl or methamphetamine. This is just the first step on a path that will try to repair some of the damage caused by the “War on Drugs”.

“Many lives have been harmed because of our failed approach to cannabis. It's time we righted those wrongs,” Biden said, urging state governors to follow suit.

"Just as no one should be in a federal prison just because of cannabis possession, no one should be in a local or state prison for that very reason," he added. A government official noted that more than 6.500 people with previous federal convictions are eligible for pardons.

However, the Professor, writer and scientist Carl L. Hart stated he was “disappointed” that no steps have been taken to “ensure that no one is arrested for possessing ANY drug”. In his Twitter account, Hart appealed to Biden to legalize all drugs.

The granting of federal pardons

Firstly, Biden intends to grant a pardon to all those who are registered at the federal level with regard to the simple possession of cannabis, having already given directions to the Attorney General to develop the administrative process of attributing pardon certificates to eligible citizens. .

There are thousands of US citizens with a federal record for possession of cannabis, who have a lot of trouble getting jobs, housing, and even educational opportunities. In this way, the American president intends to minimize and alleviate such consequences.

Appeal to state governors

The second measure is to appeal to all Governors of the various American states to grant pardons at the state level, because according to Joe Biden, “if no one should be in a federal prison for the simple possession of cannabis, no one should have to be in a local prison either. or state”.

The step towards federal decriminalization

Finally, the President asked the Secretary of Health and Human Services and the Attorney General to quickly begin the process of reviewing the classification of cannabis under federal law.

The current US federal law classifies cannabis as part of Schedule I of the Controlled Substances Act, a classification that characterizes the substances present in it as “drugs without medical use currently accepted and with a high potential for abuse”. ”. This category includes, in addition to cannabis, heroin, LSD, Peyote and Ecstasy, for example.

Being listed on Schedule I, cannabis is currently considered a far more dangerous drug than Fentanyl and methamphetamine, drugs that are increasingly causing overdoses in the US.