Jim Cramer explains the reason that many cannabis stocks fell Wednesday morning

Jim Cramer explains the reason that many cannabis stocks fell Wednesday morning

CNBC’s Jim Cramer discusses how the election results have an impact on some of the biggest cannabis stocks. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

On Wednesday, Oregon became the first state in the nation to legalize the active ingredient of magic mushrooms. This was on the heels of an election night where more states relaxed restrictions on recreational drug use across the country.

Oregon’s Measure 109 will allow legal access to psilocybin (the main ingredient in “magic mushrooms”) for mental health treatment in supervised settings. At 6:06 a.m. ET, the measure was passed. ET: The measure passed with 55.8% support, and more than 2 million votes, according to Oregon’s Secretary-of-State.

Some cities have attempted to legalize and regulate the drug’s access, but Oregon will be the first state to do so if the bill passes. The medical benefits of the drug have been proven in some studies to be beneficial to trauma survivors.

Oregon’s Measure 110,, which has won more votes than 58%, would make possession of small amounts of hard drugs like heroin and LSD a crime. People in possession of marijuana would not face criminal prosecution. Instead, they would be subject to a $100 penalty, which could be waived if they agree to seek treatment.

Oregon is one of many jurisdictions where drug deregulation supporters cheer in an election year unlike any other.

With the passage of Initiative 81., District of Columbia voters voted to make magic mushrooms and other psychedelic drugs illegal. At 2:20 a.m. ET, the initiative had passed. ET: The initiative passed with a stunning 76.3% vote.

Before the measure becomes law, it will face many hurdles. The D.C. Council will then review the measure and have the option of overturning it or sending it to Congress. The 30 legislative time period allows Congress to either block the measure or make it law.

American Psychological Association spokesperson said that the association does not take a position on legalization or decriminalization for psychedelic drugs.

A number of states also asked their voters to vote on regulating marijuana. New Jersey and Arizona voters voted to legalize recreational marijuana use.

South Dakota voters approved one of two marijuana ballot initiatives, which made the drug legal in the state on a medical basis. A majority of Mississippi voters approved an initiative to establish a medical marijuana program that would allow patients with severe conditions access to medical marijuana.

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