Shares of Tilray (NASDAQ: TLRY) rose 11% on Monday after U.S. Vice President Kamala Harris seemed to favor fully legalizing marijuana — a development that would be obviously positive for the cannabis-lifestyle and beverages company.

Kamala Harris favors legalizing cannabis

At the White House on Friday, Harris reportedly told a room full of cannabis pardon recipients that “we need to legalize marijuana,” according to people familiar with the closed-door meeting. In public opening remarks beforehand, Harris also called on the U.S. Drug Enforcement Administration (DEA) to reschedule marijuana “as quickly as possible,” arguing that it’s “absurd” marijuana is currently considered as dangerous as heroin under its current status as a Schedule I drug per the Controlled Substances Act of 1970.

Marijuana is currently legal at the state level in 38 states for medical use and 24 states for recreational use. Harris’ comments on Friday marked the first time since joining the ticket as Joe Biden’s running mate in 2020 that the Vice President has signaled support for legalizing marijuana on a federal level. This is a potentially significant shift for the administration ahead of this year’s presidential election.

What’s next for Tilray investors?

Tilray generates around 35% of its revenue from cannabis products — though that total is declining as the company has made significant acquisitions in the alcohol beverage space in recent quarters. Tilray also continues to expand internationally, including announcing approval just last week for its first medical cannabis extract product in Portugal.

But considering the United States easily represents the world’s largest cannabis market — with U.S. cannabis sales expected to represent around two-thirds of global cannabis revenue in 2024 — it’s no surprise to see Tilray rallying in response to the seemingly increased prospect for the drug becoming legal in the U.S. on a federal level in the near future.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.