The public hearing to be held by the Drug Enforcement Administration (DEA) on December 2nd has sparked wide market attention, aiming to discuss the proposal for the reclassification of cannabis.
According to a proposal from the US Department of Justice, cannabis is expected to be moved from the Schedule I category of controlled substances under the Controlled Substances Act (CSA) to Schedule III, alongside drugs such as ketamine. This potential reclassification is anticipated to have a significant impact on cannabis-related stocks, keeping investors highly vigilant.
By the end of April, media reports on this proposed rule had already triggered substantial volatility in the cannabis stock market. Despite the DEA typically holding hearings on important regulatory reforms, some industry experts expect the agency to be more directly involved in the rule-making process for the reclassification of cannabis.
Against this backdrop, Canadian licensed cannabis producers Canopy Growth (CGC.US), Tilray (TLRY.US), Aurora Cannabis (ACB.US), and SNDL Inc. (SNDL.US) have seen pre-market trading prices decline. Meanwhile, attention is also on companies operating in the Canadian cannabis market such as OrganiGram Holdings (OGI.US) and Cronos (CRON.US).
Cannabis stocks in the US market are also worth investors' attention, including Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (OTCQX:ACRHF), Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Ayr Wellness (OTCQX:AYRWF), TerrAscend (OTCQX:TSNDF), Jushi Holdings (OTCQX:JUSHF), and Verano Holdings (OTCQX:VRNOF). Although these companies are all cannabis stocks listed in the US market, most of them are traded on the over-the-counter (OTC) market.
Additionally, ETFs representing US cannabis companies, such as AdvisorShares Pure US Cannabis ETF (MSOS.US), have experienced a pre-market decline of about 11%. Other related cannabis ETFs include AdvisorShares Pure Cannabis ETF (YOLO.US), ETFMG Alternative Harvest ETF (MJ.US), and Amplify Seymour Cannabis ETF (CNBS.US).
As the public hearing approaches, investors and analysts in the cannabis industry are closely monitoring the potential impact of this event, which is expected to have far-reaching effects on the trading activities of cannabis-related stocks and ETFs.