Cannabis stocks spike on report that Senate Democrats are planning to introduce a bill for federal decriminalization

• Marijuana stocks soared after Bloomberg reported that said Senate Democrats will introduce a federal decriminalization bill next week.
• Shares of Tilray jumped as much as 20%, while Aurora Cannabis spiked 10%, and Canopy Growth climbed 7%.

Marijuana stocks soared Thursday after Bloomberg reported that said Senate Democrats will introduce a federal decriminalization bill next week.

Sources told Bloomberg that Majority Leader Chuck Schumer worked with Senators Cory Booker (D-NJ) and Ron Wyden (D-Oregon) on the bill. They made adjustments to a draft bill after circulating it last year and getting feedback from key committees, the report said.

Shares of Tilray Brands jumped as much as 20%, while Aurora Cannabis spiked 10%, and Canopy Growth climbed 7%. The slow pace of a federal legalization effort has weighed on the sector, with Thursday's news being a rare glimmer of hope.

The bill, named the Cannabis Administration and Opportunity Act, would remove marijuana from the Controlled Substances Act, which classifies cannabis as a schedule-1 narcotic. It would still allow states to keep or enact bans on production and distribution, according to Bloomberg.

The bill would also offer grants to underserved communities to enter the recreational marijuana space. The House already voted in April to decriminalize marijuana, eradicate previous convictions, and apply taxes to new cannabis businesses.

But the legislation would face long odds once it reaches Senate Republicans, as the bill would likely require at least 60 votes to pass the evenly divided chamber.