DEA - Biden's Weed Promise The Federal Govt. & 2024 Elections: Analyzing Stock Values Taxes & Timing | Benzinga
Amidst President Joe Biden’s campaign promises, rescheduling marijuana from Schedule I to Schedule III is seen as the most impactful on the stock market, possibly positively fueling stock rallies.
The possible reclassification of marijuana and its profound effects on the cannabis stock market is the central theme of an in-depth equity research report by Pablo Zuanic senior analyst of Zuanic & Associates.
Factors Influencing Market Impact
The report highlights several critical factors that will influence the extent of this impact, including the manner and timing of the announcement, the length of the comment period and the content of the DEA memo.
Zuanic expresses concern over the possible involvement of pharmaceutical and alcohol lobbies during the comment period and the mixed reactions from both liberal and conservative sides towards rescheduling —a swift process concluding before the election is deemed favorable for stocks.
Uncertainties And Regulatory Framework
The DEA’s pending decision could follow the conventional wisdom of moving marijuana to Schedule III, but uncertainties remain regarding the DOJ's final stance and regulatory framework.
"While the HHS oversees the scientific and medical evaluation of the scheduling review, the DEA looks at statutory and regulatory criteria in making its decision. If detailed enough, this could be the basis for the "DOJ framework,” Zuanic wrote.
Regarding cannabis rescheduling, Zuanic wondered: "Will the DEA accept the 'conventional wisdom' narrative, and just say 'Yes move it ...