Cannabis Stocks Moving as DOJ Announces Plans on Formalizing Reclassification Process

The PRISM Emerging Cannabis Index currently does not have a single detractor as shares of cannabis stock are on the rise which is likely related to the recent announcement by the Department of Justice (DOJ). The DOJ has taken a major step in its commitment to reschedule marijuana to a lower-risk drug by announcing the formalization of its process.

The Drug Enforcement Administration (DEA) has submitted a notice of proposed rulemaking in the Federal Register this afternoon, triggering a 60-day comment period that will allow members of the public to submit remarks regarding the rescheduling proposal before it is finalized. In its first 30 days, parties can request a hearing regarding the declassification proposal. Once the DEA reviews all public comments and hearings, it will issue a final order to reschedule marijuana. The process in its entirety could take anywhere from a few months to a year.

Upon its rescheduling, many new benefits and potential opportunities will be presented. Federal scientists will be able to research and study the medical benefits of cannabis, pharma companies may get involved in selling and distributing the drug in states where legal, and the cannabis industry could thrive as significant tax burdens for businesses would be eliminated.

Currently, Cleaver Leaves Holdings, (CLVR), Canopy Growth (CGC) and Ayr Wellness (AYRWF) are leading the PRISM Index.