Forget Elon Musk’s marijuana-smoking security-clearance troubles — just investing in cannabis stocks can cause you problems

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Buying cannabis stocks could be interpreted as ‘involvement’ in illegal drugs, some fear.

Tesla TSLA, +2.39% and SpaceX founder Elon Musk is reportedly having his security clearance reviewed after smoking marijuana during a podcast, but he’s far from the only person whose government security clearance is threatened by a cannabis connection.

Using marijuana — which is illegal under federal law but legal in several states — is definitely a no-no under security clearance guidelines, which prohibit the unlawful use of controlled substances. But Maimone, whose union represents close to 9,000 Department of Defense employees worldwide, said it felt like higher-ups were “picking on” employees who are invested in marijuana-related stocks.

‘If you are purposely seeking out marijuana stocks and intentionally investing in what the federal government sees as an illegal drug, you run the risk of losing your clearance.

Investment in cannabis companies is booming The questions come as the burgeoning cannabis industry is capturing the interest of investors who see an opportunity to get in on the ground floor of a potentially lucrative market. Shares in companies like, Aphria Inc. APHA, +2.20% , Aurora Cannabis Inc. ACB, +2.58% , Cronos Group Inc., Canopy Growth Corp CGC, +1.34% WEED, +1.10% , GW Pharmaceuticals GWPH, +3.76% , and Tilray Inc. TLRY, +0.00% have surged over the last year.

But buying shares in individual cannabis companies is another matter. “If you are purposely seeking out marijuana stocks and intentionally investing in what the federal government sees as an illegal drug, you run the risk of losing your clearance,” said Kuhn, who chairs the national security practice group at law firm Tully & Rinckey.

 

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