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Jeff Sessions’ Resignation Could Be Good News for Cannabis Stocks

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Aug. 18 2020, Updated 5:26 a.m. ET

Attorney General Jeff Sessions resigns

On November 7, US Attorney General Jeff Sessions resigned from his position. The Justice Department’s chief of staff, Matt Whitaker, will serve as the acting attorney general. This development could bring some optimism to the cannabis sector in the US, as Jeff Sessions was one of the harshest critics of marijuana.

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Rescinding the Cole Memo

In January, Jeff Sessions rescinded the Obama-era Cole Memo, which favored marijuana-related businesses. Recreational cannabis is legal in some US states. However, it remains a Schedule 1 drug under the Controlled Substances Act and is illegal at the federal level. To resolve this discrepancy, the Cole Memo advised federal prosecutors to look the other way in states where marijuana has been legalized.

Does Trump support marijuana industry?

Following the rescission of the Cole Memo, Republican senator Cory Gardner from Colorado issued a statement that mentioned positive support from Donald Trump regarding his concerns about Jeff Sessions’ rescission of the Cole Memo. In addition, Gardner discussed support from Trump to find “a federalism-based legislative solution.”

The above chart shows that the potential market opportunity in the US for cannabis companies (MJ) including Canopy Growth (WEED), Aurora Cannabis (ACB) (ACBFF), Tilray (TLRY), and Aphria (APHQF) is quite large compared to the 14 other countries listed in the chart, which explains why cannabis stocks rose on November 7. But that was not the only news that lifted cannabis stocks. Read on to the next part to learn about another event that boosted the sector.

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