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US Cannabis Update: Gardner and Warren Reintroduce STATES Act

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STATES Act reintroduced

Yesterday, 2020 US presidential candidate Senator Elizabeth Warren and Senator Cory Gardner reintroduced the Strengthening the Tenth Amendment Through Entrusting States (or STATES) Act to the Senate. The bill seeks to amend the Controlled Substance Act and certain provisions related to marijuana so that each state will have the right to determine how to regulate marijuana without interference from federal authorities.

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Waiting for a catalyst

The cannabis sector has largely moved sideways since late February this year as we see in the above chart. The Horizons Marijuana Life Science ETF (HMMJ) has returned just about 3% from February 25 to April 4. We’ve seen a similar trend in Canopy Growth (WEED), Cronos Group (CRON), and Aphria (APHA). It appears that the industry is waiting for a catalyst, which could very well come from developments in the US. Also, read Tilray (TLRY) Hits Seven-Month Low as Cannabis Sector Sees Weakness.

As we get closer to the 2020 US presidential election, the candidates are making bolder moves to establish their stance on marijuana. Senator Cory Booker reintroduced the revised version of his previously introduced Marijuana Justice Act, which seeks to legalize marijuana at the federal level. Bernie Sanders outright stated that he believes in legalizing marijuana.

The STATES Act was first introduced last June. However, it was struck down by Senate Majority Leader Mitch McConnell. The bill will still have to go through Senator Mitch McConnel to become law.

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