Cannabis stocks were having a strong trading day after a U.S. House of Representatives committee voted to end the federal ban on marijuana, a step toward allowing the states to regulate the substance however they want.
The Marijuana Opportunity Reinvestment and Expungement Act of 2019 (the More Act) came out of the House Judiciary Committee with a 24-10 vote in its favor, setting up a vote in the full House, which is controlled by Democrats.
The bill, which was introduced by Rep. Jerry Nadler (D-New York), is not expected to be taken up by the Republican-controlled Senate anytime soon.
"We have failed for years to raise this issue in a responsible way. The right bill would pass the House in a way that would demand Senate action. When it comes to a bill like this, they would not address it," Colorado Rep. Ken Buck, a Republican, said.
"The bill is nearly devoid of bipartisan support. Do we want to accomplish something, or simply provide a political statement," said Rep. Doug Collins (R-Georgia), the ranking Republican on the Judiciary Committee, according to the publication Westword.
While federal legalization could still be years away, investors took the opportunity to prop up struggling cannabis stocks.
Tilray (TLRY) - Get Tilray, Inc. Report shares were rising 8.6% to $22.72, while Aurora Cannabis (ACB) - Get Aurora Cannabis Inc. Report shares gained 19% to $3.13, Canopy Growth (CGC) - Get Canopy Growth Corporation Report jumped 18% to $20.80, Cronos (CRON) - Get Cronos Group Inc Report shares tacked on 13% to $7.80 and the ETFMG Alternative Harvest ETF (MJ) - Get ETFMG Alternative Harvest ETF Report gained 8.8% to $18.69.