Marijuana Stocks soared in the Stock Market amid CBD Legislation

Yesterday, representatives from both sides of the aisle introduced a bill in the House that would allow hemp-derived cannabidiol (CBD) products to be marketed as dietary supplements for the first time. As a result, Hexo, Aurora Cannabis, Charlette’s Web Holdings, and Sundial Growers soared in the Stock Market.

Marijuana soared in the Stock Market

FILE PHOTO: The Logo for Aurora Cannabis Inc., a Canadian licensed cannabis producer, is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 8, 2019. REUTERS/Brendan McDermid/File Photo

Lorie Starling (1/16/2020): Yesterday, representatives from both sides of the aisle introduced a bill in the House. The bill aims to allow hemp-derived cannabidiol (CBD) products to be marketed as dietary supplements for the first time. As a result, Hexo, @Aurora_MMJ, Charlette’s Web Holdings, and Sundial Growers soared in the Stock Market. 

Marijuana soared in the Stock Market
Getty Images

While a 2018 Farm Bill federally legalized hemp and CBD, the FDA still does not allow businesses to sell it in food supply or as a nutritional supplement. Consequently, marijuana fell stagnant after the U.S. Food and Drug Administration (FDA) issued a consumer warning in November 2019 about the potential risks of CBD. Some predict that the FDA planned to take a firmer stance against CBD food products. However, the proposed legislation changes the DFA’s definition of dietary supplements to include CBD. Rep. Collin Peterson (D-MN), chairman of the House Agriculture Committee, commented, “This bill will allow the FDA to regulate CBD that comes from hemp as a dietary supplement, providing a pathway forward for hemp-derived products.” 

While many Marijuana stocks soared in the Stock Market this year, 2019 was a different story. Advocates and lawmakers hope the states’ positive pressure to pass marijuana legislations overshadow FDA’s negative warning regarding CBD.