US Attorney General Jeff Sessions plans to roll back rules that paved the way for states to legalize marijuana, AP reported Thursday.
Cannabis-related stocks took major hits after the news, falling as much as 35%.
Marijuana stocks slumped after the Associated Press reported Thursday that US Attorney General Jeff Sessions plans to roll back Obama-era federal policiesthat paved the way for states to legalize marijuana, citing anonymous sources familiar with the matter. He is expected to announce the policy shift later Thursday.
Several of the largest cannabis growers and other marijuana-related stocks took a hit in trading Thursday, reversing gains earlier in the week fromCalifornia’s full legalization of recreational marijuana.
Terra Tech, the largest US pot stock with a $407 million market cap, was down 35% on the news.
Cannabis Science was also down 35% on the news.
Medical Marijuana Inc was down 22.74% on the news.
Canopy Growth, the largest Canadian marijuana stock, was trading down about 9%.
Aurora Cannabis plummeted 13% on the news and was trading down roughly 8% mid-morning.
The move by President Donald Trump’s attorney general likely will add to confusion about whether it’s alright to grow, buy, or use marijuana in states where pot is legal, since long-standing federal law prohibits it. While mmarijuana continues to be illegal at the federal level, a number of states have voted to legalize and regulate the recreational market in recent years.
Sessions has previously touted marijuana as a “gateway drug," saying it could lead to use of much more harmful drugs. This has been debunked by numerous scientific studies.