U.S. cannabis stocks continue rallying as investors ponder potential de-scheduling

U.S. cannabis stocks continued to move up in pre-market trades on Friday, as the AdvisorShares Pure US Cannabis ETF MSOS, +0.99% jumped another 9% following steep gains in the previous session on comments by President Joe Biden that the U.S. would consider de-scheduling cannabis from its current position as a Schedule 1 narcotic under federal law. Jefferies analysts Owen Bennett said Biden’s move to ask the health secretary and attorney general to review cannabis could mark a path to federal re-scheduling without a Congressional action. Along with a potential measure called SAFE Banking to open up the financial system, Bennett said re-scheduling cannabis would, “we believe, be enough to allow for uplistings, and in turn, significant inflows of new institutional capital.”