Republican presidential nominee Donald Trump on Monday sparked a rally in cannabis stock after he signaled that he's in line with the Biden administration on lowering the federal classification of cannabis to a less restrictive level.
Trump said late Sunday on his Truth Social platform that he supports a ballot referendum in Florida to allow adults 21 and over to use cannabis and also supports assigning cannabis to Schedule III under the U.S. Controlled Substances Act. Cannabis is currently listed as a Schedule I drug, the same category as LSD and heroin.
Trump also said he supports new banking rules would allow cannabis companies to conduct credit-card transactions and resolve other banking-related challenges.
"As President, we will continue to focus on research to unlock the medical uses of marijuana to a Schedule 3 drug, and work with Congress to pass common sense laws, including safe banking for state authorized companies, and supporting states rights to pass marijuana laws," Trump said.
Trump also reiterated the need to "end needless arrests and incarcerations of adults for small amounts of marijuana for personal use" as well as "providing access for adults, to safe, tested product."
The AdvisorShares Pure U.S. Cannabis exchange-traded fund MSOS rose 8% Monday and the Amplify Alternative Harvest ETF MJ moved up by 5%.
Among individual stocks, Trulieve Cannabis Corp. (TCNNF) rose 10.2%, Ayr Wellness Inc. (AYRWF) rallied 9.5% and Curaleaf Holdings Inc. (CURLF) rose 8%.
Canopy Growth Corp. $(CGC.AU)$ rose 12%, Tilray Brands Inc. $(TLRY)$ moved up by 6% and Green Thumb Industries Inc. (GTBIF) rose 6.7%.
Ali Amirhooshmand, head of government relations for Dutchie, a technology platform for cannabis companies, said Trump's support reflects growing bipartisan momentum for reform.
While polarization between Democrats and Republicans remains a key theme in American politics, the two parties appear to be moving closer on the issue of cannabis reform.
Trump is locked in a tight race with Democratic presidential nominee Kamala Harris.
With Florida's electoral votes a key factor in close presidential elections, Trump's move in favor of cannabis appears to be aimed at boosting his popularity in the state. Florida's cannabis referendum has been polling with more than 60% support from voters.
This marks at least the second time Trump's comments have led to a rally in cannabis stocks.
In August, Trump announced he was preparing a statement about cannabis in Florida and said that it's wrong that people there are being locked up for using cannabis when it's legal in many states.
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