The U.S. cannabis industry is waiting for a federal legalization bill that investors, interest groups and executives had wished would be a universal cure for partisan divide over the highly contested issue, according to a report released by Bloomberg on Monday.

  • Cannabis stocks faded away after the bill was announced. It was expected the legislation would not obtain universal endorsement, given the controversies relating to cannabis.
  • The authors of the bill acknowledged some shortcomings arguing there is no standard for measuring drugged driving or research on how marijuana impacts fetal health.
  • The bill proposed funding for more research on such areas, but the findings could take many years.
  • Smart Action on Marijuana, a group pushing for decriminalization of marijuana possession rather than full legalization, raised the issue with the omission of fundamental measures to protect public health.

Analysts urged investors to capitalize on the weakness in stock prices, suggesting the companies could benefit in the long run based on their strong balance sheets. EUR USD up +0.10%.