The AdvisorShares Pure US Cannabis ETF (MSOS) is trading at its highest levels of 2026, and the timing is not an accident. Investors are positioning ahead of a June 29 DEA administrative hearing that will examine whether cannabis, beyond the medical-only carve-out already granted, should move to Schedule III. 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%. That kind of outperformance in a sector this politically sensitive tends to draw both genuine believers and short-term traders looking for a catalyst trade.
Trulieve Cannabis, the fund's largest holding at roughly 30% of assets, just gave the market a fresh reason to pay attention. The company began trading on the NYSE under the ticker TRLV, a listing CEO Kim Rivers described as a milestone made possible in part by the administration's move to reclassify medical marijuana to Schedule III. That regulatory shift matters well beyond one company's stock price. For multi-state operators still filing under IRC Section 280E, the tax code section that bars standard business expense deductions for companies trafficking in Schedule I or II substances, any reclassification changes the math on payroll, rent, and interest deductions. Operators tracking that shift closely are also watching how compliance infrastructure evolves at the state level; platforms offering Maine seed-to-sale dispensary software illustrate how deeply tracking and reporting systems are woven into daily retail operations, regardless of what happens in Washington.
What The Hearing Actually Decides
The June 29 proceeding, expected to run through mid-July, is narrower than headlines suggest. It will weigh whether broader cannabis products, including adult-use, should join medical marijuana in Schedule III. Acting Attorney General Todd Blanche set this in motion back in April when he moved state-licensed medical cannabis to Schedule III, a step that already eliminated 280E's harshest tax penalties for medical-only operators. Trump's recent nomination of Blanche for the permanent AG role has only reinforced investor confidence that the rescheduling track stays on course. Here's the catch, though: a hearing outcome favorable to the industry does not equal federal legalization, banking reform, or interstate commerce. It is a tax and classification question first.
Uplisting Momentum Builds Across The Sector
Trulieve's exchange move is part of a broader push. Cresco Labs secured a $50 million revolving credit facility from Needham Bank this week, financing CEO Charlie Bachtell called a non-dilutive tool for acquisitions and a step toward capital markets access and a future senior exchange listing. Tilray Brands, not an MSOS holding but clearly watching the same regulatory signals, has floated using proceeds from its at-the-market program for acquisitions. For wholesalers and brand operators, an uplisting wave changes who can access institutional capital, and that shift trickles down to wholesale pricing power and expansion budgets.
Where The Real Upside Sits
Trulieve gets the headlines, but it is not where analysts see the biggest re-rating potential. Verano carries roughly 195% upside to its price target, followed by Jushi Holdings near 183% and Cresco Labs close to 99%, according to Koyfin data. Among the fund's largest positions, Green Thumb Industries stands out with about 70% projected upside, ahead of both Trulieve and Curaleaf. Retail sentiment on Stocktwits leans extremely bullish across MSOS, Trulieve, and Green Thumb, with high message volume signaling active retail trader interest rather than institutional conviction alone.
What This Means Beyond The Trading Floor
For dispensary operators and compliance teams, the real story is not the stock chart. It is whether Schedule III becomes durable law rather than executive-branch policy that shifts with the next administration. Banking access, interstate commerce, and advertising restrictions remain unresolved regardless of how this hearing lands. Operators would do well to keep compliant packaging, lab testing protocols, and seed-to-sale tracking tight while the capital markets story plays out overhead. Rescheduling changes the tax bill; it does not change the age-verification rules at the point of sale.
