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by Stockwatch Business Reporter

The S&P/TSX Cannabis Index added 4.46 to 193.88, while the CSE Composite Index added 13.99 to 757.37. The celebration continued for U.S.-focused cannabis stocks. Yesterday's conclusion of Georgia's run-off elections resulted in the Democrats seizing the upper hand in the Senate, thereby gaining effective control over both houses of Congress and the White House. This in turn paves the way for various pro-cannabis-reform measures to break through old bottlenecks and make their way into law.

In a research note last night, Canaccord Genuity analysts Matt Bottomley and Derek Dley pointed to two particular pieces of legislation with newly improved odds. Those would be the MORE Act (which would deschedule and remove cannabis from the Controlled Substances Act) and the SAFE Banking Act (which would give cannabis companies access to traditional banking services, lowering their cost of capital). "With a major roadblock now removed in the Senate, we believe the Biden administration [of incoming president Joe Biden] may now have more flexibility with how the above initiatives are potentially brought into practice," wrote Mr. Bottomley and Mr. Dley. They nonetheless urged patience to those awaiting full-scale legalization. "The overall timing and other practical considerations of such a shift (particularly full legalization) is unclear," they opined, "and will likely still take considerable time to achieve."

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