CBDX : ETF fund manager comment on the MORE Act ( Marijuana Opportunity Reinvestment and Expungement)
Sign up to our free newsletters
Nawan Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF (CBDX)
The MORE Act will likely fail but there could be another marijuana legalisation bill on the way
The US House of Representatives recently passed the Marijuana Opportunity Reinvestment and Expungement, or MORE Act.
This bill calls for the removal of cannabis from the Controlled Substances Act, effectively legalising marijuana and requires courts to scrub the conviction records of nonviolent marijuana offenders.
As a result, cannabis stocks have surged in the month of March.
While encouraging and confirms the “regulatory catalyst” thesis of marijuana investments, we should put the recent developments around legal changes in perspective.
To become law, the MORE Act must pass in the Senate, the upper house of Congress. Its chances of success are not very likely, where it would need the support of all 50 Democrats and at least 10 Republicans to pass. Aspects such as scrubbing the conviction records of past offenders makes it less likely to gather support among Republicans and some Democrats.
However, that’s not to say progress of legalisation in the US is now off the cards.
A more politically moderate decriminalisation bill has originated in the Senate, called the Cannabis Administrative and Opportunity (CAO) Act. This is being spearheaded by Senate Majority Leader Chuck Schumer.
The CAO Act is expected to be introduced in April following several months of public comments and revisions. There is ample movement in Congress to finally table passable cannabis legislation and with competing bills on the table, there is increased hope that compromise can be reached between and within political parties.
Globally marijuana legalisation is gaining pace. A total of 45 countries have legalized medical marijuana, and 30 have enacted laws decriminalizing cannabis in some way. This momentum will continue to gather pace.
Source: ETFWorld.co.uk
Subscribe to Our Newsletter
