On January 14, Nutritional Outlook reported that the House Agriculture Committee chairman, Collin Peterson, introduced the new legislation. The bill will modify the Federal Food, Drug and, Cosmetic Act. The bill will include hemp-derived CBD products to be marketed under dietary supplements.
Also, the bill has asked the Department of Agriculture to submit a report on the problems that hemp farmers face on the regulatory and marketing front. Thomas Massie and James Comer, members of the House of Representatives from Kentucky, and Chellie Pingree, a member of the House of Representatives from Maine, co-sponsored the bill.
Speaking on the bill, Peterson said, “This bill will allow FDA to regulate CBD that comes from hemp as a dietary supplement, providing a pathway forward for hemp-derived products. It would also identify barriers to success for hemp farmers, informing growers and policymakers of the challenges facing this new industry,” as reported by Nutritional Outlook.
The cannabis sector rose due to investors’ optimism about the introduction of the new bill. On Wednesday, the ETFMG Alternative Harvest ETF (NYSE:MJ) rose by 5.4%, while the Horizons Marijuana Life Sciences Index ETF increased by 6.5%. Charlotte’s Web Holdings (NYSEARCA:CWEB), which has a significant market share in hemp-based CBD products, rose by 17.3%. Despite the rise, the company has lost 30.4% of its stock value. In November, the company reported weak third-quarter earnings.
Canopy Growth (NYSE:CGC), which recently entered the US CDB market with its First & Free Brand, rose by 4.2%. Cronos Group (NASDAQ:CRON) rose by 5.7%. The company acquired four subsidiaries of Redwood Holding in September 2019, which gave it entry to hemp-derived CBD consumer products. Aurora Cannabis (NYSE:ACB) rose 15.5% on Wednesday. In July 2019, Aurora Cannabis entered the US CBD market through a clinical research program with UFC (Ultimate Fighting Championship).