Today’s price action in a range of cannabis stocks has been impressive, especially for Clever Leaves (NASDAQ:CLVR). Currently, CLVR stock has accelerated 2% higher as investors price in continued upside for these high-growth names.
The cannabis sector has been particularly volatile over the last few years. After surging in 2017 and 2018 on news of Canadian legalization, investors shifted their attention toward the United States. At the end of 2020, a White House win for President Joe Biden and a Democratic majority in the House and Senate made cannabis legalization seem like all but a sure thing. At least in the minds of cannabis bulls.
To date, however, little has been done on moving legislation forward to enact legalization. That said, a number of bills have been proposed in Biden’s first term.
Now with mid-terms coming up, it appears Democrats are rallying efforts to see what can be accomplished in the world of cannabis. In particular, the highly anticipated Marijuana Opportunity Reinvestment and Expungement (MORE) Act has been the latest step in the right direction.
So, let’s dive into what’s driving Clever Leaves stock and many of its peers higher today.
What’s Behind Today’s Move in CLVR Stock
Today, the House of Representatives voted on the MORE Act. Most analysts had predicted the bill would pass the House with ease. As it happens, that exact outcome prevailed.
Specifically, the House voted 220 to 204 in favor of passing the MORE act. The bill aims to “end the federal ban, but leave legalization up to the states.” Accordingly, cannabis would be essentially decriminalized, paving the way for legal marijuana across most of the United States.
For investors and the general public, this act is widely popular. Of course, there still remains a question of whether it will get through the Senate. Various analysts have suggested MORE may have a difficult time getting approved, absent being added to another piece of legislation.
That said, this affirmative vote is certainly a step in the right direction. The fact the bill saw some bipartisan support is encouraging as well. As such, investors in names like CLVR stock have a lot to be happy about today. All told, many investors appear to be ready to vote with their wallets on the cannabis sector.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.