Confidence dented

Cannabis stocks fell Monday, as investors digested the first reports from Friday’s U.S. Food and Drug Administration (FDA) regulatory hearing on cannabis and its ingredients, according to MarketWatch.

The FDA conducted its first-ever hearing on cannabis and CBD on May 31, with more than 100 speakers offering views, including researchers, health professionals, advocates, manufacturers and opponents.

The FDA has warned companies that because it views CBD as a drug, it cannot be added to food or beverages or marketed as a dietary supplement in interstate commerce. But it has also said that given the strong public interest in CBD as a wellness aid, it will seek to help provide pathways to regulatory approval.

“[The hearing] highlighted the messy state of the industry, with widespread use of CBD products with minimal standardization, evidence for benefit and understanding of safety profile,” said Evercore ISI analyst Josh Schimmer.