What happened
Cannabis stocks are on fire Monday after another sign that the United States might be getting closer to easing banking rules for legalized marijuana. Canadian pot stocks soared on the news. As of 2:25 p.m. ET, shares of Tilray Brands (TLRY 1.74%) were 12.4% higher, Canopy Growth (CGC 4.21%) was up 18.3%, and Aurora Cannabis (ACB 1.00%) stock had popped 11.7%.
So what
Today's jump brings the return from Tilray shares to more than 40% in the last month as the support for legalizing weed in some form gains momentum in the U.S. The latest news came when Senate Majority Leader Chuck Schumer, the New York Democrat, said in a Sunday debate that Congress is getting "very close" to agreement on a marijuana bill that would allow legal pot businesses access to banking services.
The comments, reported by the website Marijuana Moment, also included the fact that the Democratic leader has made important progress on the topic with Republican senators, too.
Now what
In the Sunday debate with Republican challenger Joe Pinion, the topic of marijuana legalization was discussed. That topic resurfaced on the political landscape earlier this month when President Joe Biden announced he was going to pardon thousands who have been convicted on federal charges of simple marijuana possession.
Schumer agreed with that move, and noted that with many states having already legalized recreational cannabis, the federal government should take a stance. Schumer said, "I am working in a bipartisan way with Democrats and Republicans to take the SAFE Banking Act, which allows financial institutions to involve themselves in cannabis companies and lend money to them." Depending on the details in any new legislation, that move would seemingly allow Canadian companies to participate more in the U.S. market.
Canadian growers like Tilray and Canopy Growth have already made inroads setting up related businesses in this country. Canopy announced a new U.S.-based holding company last week, and Tilray owns hemp products company Manitoba Harvest, craft brewer SweetWater Brewing, and spirits maker Breckenridge Distillery in the U.S.
Voters are in favor of legalizing the possession of small amounts of marijuana, according to a recent poll. Monmouth University released the results of the poll last week that showed the majority of Americans from both sides of the political aisle supported allowing individuals to possess recreational amounts.
With 76% of Democrats and 52% of Republicans showing their support, many politicians could feel more confident in supporting what has been a hot-button issue. It's not surprising to see the stocks jump today after the Senate majority leader signaled progress might be imminent, at least on the associated banking rules.
