US Vice President Kamala Harris speaks during a roundtable discussion on marijuana reform and criminal justice reform in the Roosevelt Room of the White House on March 15, 2024 in Washington, DC.
Kent Nishimura | Afp | Getty Images
Vice President Kamala Harris further positioned herself as a pro-cannabis candidate Monday in an interview with the sports and culture podcast “All the Smoke” — but industry leaders aren’t convinced her administration will deliver on the reform she’s promised.
“I just think we’ve reached a point where we need to understand that we need to legalize this and stop criminalizing this behavior,” Harris said during the interview.
This was the first time she spoke about the issue publicly since becoming the Democratic nominee for president.
“I’m encouraged by Vice President Harris’ support for the legalization of cannabis; however, we need real action, not just rhetoric,” said Jason Wilde, executive chairman of the Toronto-listed cannabis company. TerrAscendwhich operates in the United States. “I hope this time, these campaign promises are not just buzzwords, but lead to tangible change.”
Four years earlier, as a senator and 2020 presidential candidate, Harris sponsored and introduced legislation to decriminalize and tax cannabis at the federal level. Biden also tapped her as vice president to lead discussions on criminal justice and cannabis reform as his administration worked to reprogram cannabis.
FILE: Hundreds of marijuana legalization supporters protest outside the White House in Washington on April 2, 2016.
Marvin Joseph | The Washington Post | Getty Images
But the process has moved slowly, said Brady Cobb, founder of Florida-based Sunburn Cannabis.
“I would dispute the statement that Harris was the most pro-cannabis candidate,” Cobb said. “While the rescheduling has moved forward and, if passed, would mark the biggest step forward in federal cannabis reform to date, the fact remains that it is not done.”
The Biden administration said this spring that it would move to loosen restrictions by reclassifying cannabis from the stricter Schedule I to the less strict Schedule III, which would open the door for studies and research, as well as greater sales and distribution of medical supplies in states where it is legal.
In July, the public comment period on the cannabis reclassification ended with a significant 43,000 comments submitted for review. In August, the Drug Enforcement Administration further delayed the reclassification, scheduling a hearing on the proposed rule change for Dec. 2, after the election.
Cannabis investors are eager for more details on future proposals.
“We would like to hear more from the Harris campaign about how they envision reform on this issue, as many avenues need to be improved, including banking and capital markets reform,” said Emily Paxhia, co-founder of Poseidon Investment Management.
The cannabis industry is also wary of former President Donald Trump’s support for legalization.
“Trump didn’t swing the ball on cannabis during his presidency, either [Trump and Harris] I’m very even-keeled about it from my point of view,” Cobb said.
In late August, Trump departed from his usual stance that legalizing cannabis should be left up to individual states. He said that, if elected, his administration “will continue to focus on research to unlock the medical uses of marijuana into a Schedule 3 drug and will work with Congress to pass common sense laws, including safe banking for state-licensed companies and states that support rights to pass marijuana laws.”
He also said he plans to vote yes on a Florida ballot measure legitimize it recreational cannabis use;
THE AdvisorShares Pure US Cannabis ETFwhich tracks U.S. companies with exposure to cannabis, has risen 12 percent since Trump made those comments a month ago as investors see bipartisan support for legalization as a major casualty.
“The fact that both Republican and Democratic presidential candidates now support federal cannabis reform raises the possibility that federal cannabis legalization is only a matter of time,” Bernstein analyst Nadine Sarwat said in a recent note.
But while candidate support has boosted the market, Bernstein also noted that growth has stagnated in the category as it faces macroeconomic headwinds.
“Despite all the headlines about potential federal reform, sales performance at the state level is discouraging,” Sarwat said.