Marijuana stocks soar Wednesday after HHS news sent a letter Urge the DEA to loosen their rules on marijuana.

The BI Global Cannabis Competitive Index soared 7.5% following the news. Tilray Brands Inc. and Canopy Growth Corp. led the gains, each up at least 19%.

Assistant Health and Human Services Secretary Rachel Levine recommended to the Drug Enforcement Administration that marijuana be a Class III drug under the Controlled Substances Act, according to a letter seen by Bloomberg News.

There was a bout of optimism following the election of Joe Biden as president in 2020, but marijuana stocks tumbled amid delays in implementing changes to marijuana’s illicit drug status.

In October, Biden rolled out measures targeting marijuana, including an amnesty for all previous federal crimes for simple possession, while urging governors to do the same for state crimes. As part of that effort, he asked the secretary of the U.S. Department of Health and Human Services and the U.S. attorney general to initiate an administrative process to review how federal law governs marijuana use.

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