Trump praises cannabidiol for seniors and cannabis stocks soar
The former president's post about the benefits of hemp-derived CBD for seniors moved the cannabis market in the U.S.
Cannabis stocks saw a strong rise in the American pre-market on Monday, driven by a video that Donald Trump posted on his social media on Sunday. In the post, the president highlighted the medicinal benefits of hemp-derived CBD, especially for the elderly population.
The market reactions were immediate. Shares of Tilray (NASDAQ: TLRY) rose 18%, Cronos (NASDAQ: CRON) gained 10%, and Canopy Growth (NASDAQ: CGC) had the largest increase, up 19%. The Amplify Alternative Harvest ETF, which tracks companies in the sector, also advanced 13%.
In the video, Trump suggests that Medicare coverage for CBD would be "the most important health initiative for seniors of the century." The post caught the attention of the cannabis industry, which is now awaiting the president's decision on a pending proposal to reclassify the substance.
The clip, nearly three minutes long, repeatedly refers to "hemp-derived CBD," but does not clarify what this means for the broader prospects of marijuana legalization. Watch the video here.
The Impact of the Video on the Cannabis Debate
The post comes amid a heated debate in Congress over federal hemp laws. Some Republican lawmakers advocate for banning hemp products with any trace of THC, which, according to experts, could eradicate the market, as it is unfeasible to produce CBD without some level of the substance.
The video posted by Trump also features a clip from Fox News describing the economic benefits of legalizing medical marijuana. According to the report, full integration of cannabis into the healthcare system would generate savings of "$64 billion a year."
Economic Benefits and the Farm Bill
The narration of the video states that "the groundbreaking 2018 Farm Bill, championed by President Trump, was the first step" to modernizing healthcare with cannabis. The legislation, signed by him during his first term, legalized hemp with up to 0.3% THC at the federal level.
The content concludes by stating that "it is time to educate doctors about the endocannabinoid system, provide Medicare coverage for CBD, and give millions of seniors the support they deserve."