Cannabis Stocks Among Most Volatile As Investors & Advocates Wait For Congressional Moves

Cannabis stocks hit some new highs on Wednesday ahead of what could be pivotal legislation in the form of the Marijuana Opportunity, Reinvestment, and Expungement, MORE Act, which the House of Representatives is expected to vote on any day now...or any minute. 

As such, shares of Aurora Cannabis ACB, Tilray TLRY, Sundial Growers SNDL and Canopy Growth CGC surged higher this morning, before giving up much of their gains in early afternoon trading.

Wednesday's movement appeared to be a continuation of bullish sentiment building within the cannabis sector. Though cannabis investors have been waiting patiently for positive movement on the legislative front, it appears President Joe Biden’s administration is moving slowly toward the mere idea of legal cannabis.

If the MORE Act, sponsored by House Judiciary Committee Chairman Jerry Nadler (D-NY), passes in the House, getting the Senate to sign off on it is, well, like most issues in the current Congress - party line voting on a good day and outright division regardless of constituents' views on a bad day.

Meanwhile, cannabis stocks remain among the most volatile, with some investors downright bullish on the potential for federal cannabis legalization.

If passed, the MORE Act will repeal the long-standing federal prohibition of marijuana by removing it from the Controlled Substances Act — thereby ending the state/federal conflict over cannabis policies and providing state governments with greater authority to regulate marijuana-related activities, including retail sales.