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Cannabis stocks gained ground Friday in the wake of remarks by HHS Sec. Xavier Becerra on Capitol Hill in support of the DEA reclassifying marijuana as a Schedule III substance.
Stocks climbing at least 6% in afternoon trading included Curaleaf (OTCPK:CURLF), Leafly (LFLY), Village Farms (VFF), Ayr Wellness (OTCQX:AYRWF), Trulieve (OTCQX:TCNNF), High Tide (HITI), Jushi (OTCQX:JUSHF), Acreage (OTCQX:ACRHF), Ascend Wellness (OTCQX:AAWH), Verano (OTCQX:VRNOF), Cresco (OTCQX:CRLBF), and Green Thumb (OTCQX:GTBIF).
Currently, the DEA has marijuana classified as a Schedule I substance, which means it has no accepted medical use and is at high risk of being abused. Other drugs classified as Schedule I include heroin, LSD and peyote.
Schedule III drugs are considered to be substances with moderate-to-low risk of creating dependency. That class includes Tylenol with codeine and ketamine.
Becerra told the Senate Finance Committee on Thursday that reclassifying the drug was “simply reflecting what the science is showing,” noting that other states “have moved much farther than the federal government has,” according to a report by Marijuana Moment.
Becerra made his remarks in response to questions by US Sen. John Cornyn about the parameters of a scientific review of the drug conducted by the FDA that supported reclassification.
When asked by a cannabis lobbyist after the hearing when the DEA would render a decision on reclassification, Becerra said it was up to the DEA.
“You need to go to the DEA and ask,” Becerra said, according to Marijuana Moment. “Knock on their door.”