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Pot stocks traded lower on Tuesday after a key House committee approved a spending bill that included measures to prevent the Department of Justice from rescheduling cannabis to a low-risk category.
The GOP-led House Appropriations Committee voted 31-26 to approve the bill titled, the Committee Justice, Science, and Related Agencies Appropriations Act, which provides for $78.3B in funds for various U.S. agencies for the fiscal year ending September 30, 2025.
If enacted by the Senate and House of Representatives, the bill would explicitly prevent the DoJ from using the funds to “reschedule marijuana or to remove marijuana from the schedules established under section 202 of the Controlled Substances Act.”
While it’s not yet certain how the Democratic-controlled Senate would react to the bill, cannabis stocks traded lower regardless, retracing YTD gains recorded in the lead-up to the DoJ’s formal proposal to reschedule marijuana in May.
Notable decliners include U.S. MSOs, including Acreage Holdings (OTCQX:ACRHF), TerrAscend (OTCQX:TSNDF), Curaleaf Holdings (OTCPK:CURLF), and Ayr Wellness (OTCQX:AYRWF). Marijuana-related ETFs, AdvisorShares Pure US Cannabis (NYSEARCA:MSOS), Amplify Alternative Harvest (NYSEARCA:MJ), and Amplify Seymour Cannabis (NYSEARCA:CNBS), are also in the red.
Other MSOs include Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Trulieve Cannabis (OTCQX:TCNNF), Clever Leaves Holdings (OTC:CLVR), Flora Growth (FLGC), and Verano Holdings (OTCQX:VRNOF).
Cannabis stock surged in value in late April amid news reports indicating that the U.S. drug control agency, the Drug Enforcement Administration (DEA), is set to move marijuana from Schedule I to Schedule III under the Controlled Substances Act.
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