These 2 Pot Stocks Face a Challenging Future, Even if Biden Wins
There's a lot of excitement in the cannabis industry about what a possible election win by Joe Biden might mean for pot stocks. Under President Trump, there hasn't been any significant movement on marijuana legalization. But if Biden wins the Oval, there is potential for -- at least -- the decriminalization of marijuana. His running mate, Kamala Harris, said that her ticket would decriminalize the Schedule 1 drug in a debate earlier this month, causing marijuana stocks to rally as much as 10% on the day.
However, if decriminalization happens, it won't have the same effects as outright legalization. There would still be plenty of restrictions facing industry players in a decriminalization scenario. And until legalization happens, two of the largest Canadian pot stocks, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC), will struggle to grow with limited access to the U.S. market. At the end of the day, it probably won't matter who wins the U.S. presidential election, and both will face tough roads ahead.
In December 2018, the U.S. Senate passed the Farm Bill, which made hemp-derived cannabidiol (CBD) products legal at the federal level. It presented a legal way for Canadian pot stocks to enter the U.S. cannabis market. In May, Aurora Cannabis announced that it closed on its $40 million acquisition of Reliva, which sells hemp-based CBD products in the U.S. While the acquisition is an opportunity for Aurora to tap into a new and exciting market, it's not going to lead to explosive growth.
Source Fool.com
