Vice President Kamala Harris has recently advocated for changes in U.S. marijuana policy, emphasizing the need to reschedule the drug and ultimately legalize it at the federal level. Harris criticized the current classification of marijuana as a Schedule I substance—on par with heroin—calling it “absurd” and advocating for swift action to reclassify it. This change would facilitate broader research and medical applications, aligning federal laws with many state-level reforms that have already legalized cannabis.

Harris has framed her support for legalization as not only a matter of drug policy but also of social justice. She highlighted the disproportionate impact of marijuana-related arrests on Black communities, proposing that federal legalization could address these historical inequities. Harris’s vision includes opportunities for expungement of past convictions, aiming to help individuals with minor cannabis offenses rebuild their lives.

The impact of such a policy shift could be substantial for both the domestic and international marijuana markets. Federal legalization could streamline regulations across states, making it easier for companies to operate nationwide and access financial services that are currently limited due to federal restrictions. This change would likely attract more investment into the U.S. market and encourage consolidation and growth within the industry. For the global market, the U.S. taking a lead on legalization could put pressure on other countries to adopt similar reforms, potentially expanding the reach of American cannabis companies abroad.

Market analysts suggest that if the rescheduling or legalization efforts progress, it could drive a significant uptick in marijuana stocks. The potential for new market opportunities and increased investment could boost the valuations of cannabis-related businesses, from growers to ancillary services like packaging and retail technology. Stocks of companies that have already established a foothold in the industry could particularly benefit from the anticipation of a more favorable federal regulatory environment.

The focus on social equity and economic opportunities might appeal to voters who see marijuana reform as part of broader changes in criminal justice policy. For investors, should Kamala win the Presidency, they should be considering diversifying their portfolio to include this new market that is very likely to experience some significant growth.