Cannabis stocks mostly higher after FDA head promises April talks on CBD regulation

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Cannabis stocks were mostly higher Thursday, as investors digested the latest earnings reports from the sector and comments from the head of the U.S. Food and Drug Administration on plans for regulation of CBD.

FDA Commissioner Scott Gottlieb said public meetings will be held sometime in April to hear from relevant parties on how best to regulate CBD derived from hemp, which was legalized in December in the 2018 Farm Bill. The FDA is now responsible for regulating CBD, a non-psychoactive ingredient in cannabis that was not included in hemp legalization because of a lack of research into its longer-term effects on human health.

Also on Thursday, the Marijuana Justice Act was reintroduced in Congress, allowing lawmakers to consider policy reform that would end the current federal ban on cannabis and eliminate federal criminal penalties for possession, cultivation, manufacture, import and export of cannabis.“Hopefully this legislation will get the serious consideration it deserves,” said Aaron Smith, executive director of the National Cannabis Industry Association, in a statement.

John Torrens, professor of entrepreneurial practice at Syracuse University’s Whitman School of Management, said celebrity endorsements of cannabis should send a strong signal to investors that the substance is gaining mainstream credibility at a fast clip.

 

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