Cannabis stocks surged last month as the US House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act says HanEtf, moving it onto the Senate.
If passed through the upper house of Congress, it will effectively legalise cannabis as well as wiping the criminal convictions of nonviolent marijuana offenders.
However, chances of it being accepted are slim, largely due to the scrubbing of conviction records, according to Nawan Butt, manager of the Medical Cannabis and Wellness ETF.
“However, that’s not to say progress of legalisation in the US is now off the cards,” Butt adds.
“A more politically moderate decriminalisation bill has originated in the Senate, called the Cannabis Administrative and Opportunity (CAO) Act.”
The CAO Act is expected to be introduced this month following weeks of revision, with increased hope a compromise can be reached between the two major US political parties.
The Medical Cannabis and Wellness ETF climbed 5% in the past month 9.4p, while Chill Brands Group PLC (LSE:CHLL, OTCQX:CHBRF), the provider of cannabinoid products saw its price rally nearly 30% to 5.3p in the same time period.