The marijuana industry’s excitement over President Joe Biden’s call to review the drug’s federal legal status was quickly tempered by uncertainties about what changes would be made and how long they might take.
Biden said Thursday that the U.S. will review its so-called scheduling rules for marijuana because “it makes no sense” that it currently has the same level of restrictions as heroin. Changing that classification involves a review of safety risks and potential health benefits, and could remove roadblocks that have hindered the industry’s growth — including access to banking and lower tax burdens. That might make it more attractive for institutional investors and companies in the tobacco, alcohol, and food and beverage space.
Marijuana stocks, which have a history of high volatility, posted steep declines on Friday after an initial jump following Biden’s announcement.
