Cannabis stocks are trading like the industry's federal reckoning is finally arriving. The AdvisorShares Pure US Cannabis ETF (MSOS) climbed to its highest levels of 2026 this week, with investors positioning ahead of a June 29 DEA administrative hearing that could reshape how marijuana is classified under federal law. As of May 31, MSOS posted a 103.7% one-year NAV return, dwarfing the North American Marijuana Index's 36.9% gain and the S&P 500's 29.8% climb - a gap that says less about broad market euphoria and more about a sector betting heavily on one regulatory outcome.
Trulieve Cannabis, the ETF's largest holding at roughly 30% of assets, began trading on the NYSE under the ticker TRLV this week, a listing CEO Kim Rivers called a historic milestone. The move required Trulieve to separate its medical cannabis operations from its adult-use business, a structural change that let it clear the bar for a senior U.S. exchange rather than remain confined to over-the-counter markets. For multi-state operators watching from the sidelines, that separation is the real story here - it's a template other MSOS holdings may need to replicate if they want the same capital-markets access. Operationally, that kind of restructuring touches everything from entity-level tax filings to how a company manages its retail footprint; even something as granular as crm software for a dispensary new jersey becomes part of the compliance conversation once a company starts drawing sharper lines between medical and adult-use business lines for reporting purposes. crm software for a dispensary new jersey
What the DEA Hearing Actually Decides
The June 29 hearing, expected to run through mid-July, examines whether broader marijuana products - not just state-licensed medical cannabis - should move to Schedule III. That distinction matters enormously to operators. Acting Attorney General Todd Blanche already moved medical marijuana products into Schedule III back in April, a change that eliminated tax penalties tied to Section 280E for licensed medical operators. In practice, that meant companies could finally deduct ordinary business expenses - payroll, rent, interest - the way any other regulated business does. Extending that treatment to adult-use products would be a far bigger deal, touching balance sheets across the entire multi-state operator landscape rather than just the medical-only segment.
Trump's formal nomination of Blanche to serve as permanent attorney general adds another layer of investor confidence that the rescheduling process won't stall out. Fair enough, that's a reasonable read. But administrative hearings don't move in straight lines, and a favorable outcome isn't guaranteed just because sentiment on trading platforms is running hot.
Uplisting Momentum Builds Beyond Trulieve
Cresco Labs' $50 million revolving credit facility from Needham Bank, secured this week, is a preview of what rescheduling could unlock more broadly: non-dilutive financing that doesn't require operators to sell equity at depressed valuations just to fund acquisitions or working capital. CEO Charlie Bachtell framed it as positioning for a future senior-exchange listing, which tracks with what Roth Capital and AdvisorShares have both said publicly - that Schedule III treatment should improve earnings, free cash flow, and access to institutional capital and banking services across the sector.
- Trulieve (TCNNF): 30.2% of MSOS assets, Alliance Global rates it a Buy with a C$27 target, citing exposure to expanding medical markets like Texas and Georgia
- Verano (VRNO): smallest weighting among top holdings but the highest analyst upside at 195%
- Green Thumb Industries (GTBIF): 70% upside, notably ahead of both Trulieve and Curaleaf despite smaller portfolio weight
- Glass House (GLASF): the lone holding with a negative projected return at -22%
Reading Retail Sentiment With a Grain of Salt
Message-board sentiment on Stocktwits for MSOS, Trulieve, and Green Thumb is running "extremely bullish" on heavy volume, and Tilray Brands - not an MSOS holding but clearly riding the same wave - is drawing similar enthusiasm. That kind of retail chatter can be a useful gauge of momentum, but it's not a substitute for fundamentals. Dispensary operators and wholesalers watching this rally from the ground level should remember that stock-price appreciation doesn't automatically translate into looser state-level compliance burdens, lower excise tax rates, or easier banking access at the store level. Federal rescheduling, if it happens, would ease 280E pressure and open doors to capital markets - but seed-to-sale tracking requirements, METRC reporting, lab testing mandates, and compliant packaging rules remain matters of state law, largely untouched by whatever the DEA decides this month.
