By Ketki Saxena
Investing.com -- After dismal earnings in recent weeks, Canadian Cannabis stocks were on fire today, with Aurora Cannabis (TSX:ACB), Tilray (TSX:TLRY), Canopy Growth (TSX:WEED), and Cronos (TSX:CRON) amongst the top performers on the TSX today.
Cannabis stocks have recently received a boost from a revival of legalization hopes, following the passing of key bipartisan legislature in the U.S. Senate last week, Senator Chuck Schumer's reminders of bipartisan marijuana legislation so far, and the weekend’s comments from Tilray CEO that the US cannabis market was a “$100 billion opportunity.
Marijuana stocks last week received a boost from an unlikely quarter: the US Senate’s passing of the Inflation Reduction Act, which along with two recent bills touching on climate change and semiconductors, show rescinded opposition from Senators Joe Manchin (D-WVa) and Kyrsten Sinema (D-AZ), who have until now stood in the way of passing major reform.
It now appears increasingly more likely that the Democrats will pass more major legislation before the mid-term elections in November.
While there have been no further updates on Senate Majority Leader Chuck Schumer (D-NY)’s Cannabis Administration and Opportunity Act which was filed last month after more than a year in the works, Schumer did touch on cannabis legalization in a statement on Thursday.
the leader touted the “productive and bipartisan” work that the Senate has done under Democratic leadership, mentioning the Senate’s “legislation to streamline research of marijuana,” referencing legislation from Sens. Dianne Feinstein (D-CA), Brian Schatz (D-HI) and Chuck Grassley (R-IA) that cleared the chamber in April.
Apart from legislative indicators in the U.S., Canadian cannabis stocks also received a boost from Tilray CEO Irwin Simon’s comments over the weekend, who implied that legalization would likely take place soon enough and suddenly, since the legislation is broadly popular with the public.
"If you look at cannabis today in the US, 93% of Americans want medical cannabis legalized and about 63%-65% want adult use". “Today, it's legal in about 33 states, plus DC” Simon continued, calling the cannabis market in the U.S. a $100 billion opportunity.