The AdvisorShares Pure US Cannabis ETF (MSOS) has climbed to its highest levels of 2026, as capital rotates into plant-touching operators ahead of a June 29 DEA administrative hearing that could reshape federal tax and banking treatment for the industry. As of May 31, the fund posted a 103.7% one-year net asset value return, well ahead of the North American Marijuana Index's 36.9% gain and the S&P 500's 29.8%. MSOS has also added 28% over the past three months alone, even as the broader marijuana benchmark slipped roughly 1% - a divergence that tells you money is chasing something more specific than sector-wide optimism.
That something is regulatory catalysts, and Trulieve Cannabis just delivered one. MSOS' largest holding at 30.2% of assets began trading on the NYSE under the ticker TRLV this week, after restructuring to separate its medical cannabis operations from adult-use business lines - a move CEO Kim Rivers framed as a "historic milestone" tied directly to the administration's decision to move medical marijuana into Schedule III. For multi-state operators still wrestling with state-by-state licensing regimes, seed-to-sale tracking obligations, and inconsistent banking access, a senior exchange listing is not a symbolic gesture. It opens doors to institutional capital that most cannabis companies have been locked out of for years. Operators managing scattered footprints, meanwhile, are also leaning harder on infrastructure like multi location dispensary software rhode island to keep compliance logs, inventory counts, and POS data aligned across state lines as expansion accelerates. multi location dispensary software rhode island
Why the DEA Hearing Carries Weight
The upcoming hearing, expected to run through mid-July, will examine whether adult-use cannabis products - not just medical marijuana - should move to Schedule III alongside the reclassification Acting Attorney General Todd Blanche initiated in April. That earlier action already eliminated the harshest bite of Section 280E for licensed medical operators, letting them deduct ordinary expenses like payroll, rent, and interest instead of being taxed on gross revenue. Broader rescheduling would extend that relief further and chip away at the patchwork of restrictions that have kept cannabis retailers paying inflated effective tax rates compared to nearly any other legal business. Trump's formal nomination of Blanche as permanent attorney general has only reinforced investor confidence that the policy direction will hold.
Balance Sheets, Banking, and the Uplisting Race
Analysts at Roth Capital called the rescheduling order "extremely favorable," pointing to improved capital access, potential future uplistings, and better overall investability for a sector long starved of traditional financing. Cresco Labs' new $50 million revolving credit facility from Needham Bank is an early, concrete example - a non-dilutive funding tool CEO Charlie Bachtell says positions the company for acquisitions and eventual access to U.S. capital markets. That matters for wholesalers and brand operators too, since tighter credit conditions have historically forced smaller players into unfavorable terms on everything from packaging suppliers to point-of-sale vendors. Tilray, outside the MSOS basket, has signaled similar intent, eyeing acquisitions funded through its at-the-market program.
Where the Market Sees Upside - and Where It Doesn't
Not every holding is priced the same way. Verano carries the steepest analyst upside among MSOS components at 195%, followed by Jushi Holdings at 183% and Cresco Labs near 99%, according to Koyfin data. Green Thumb Industries, at 70% upside, outpaces both Trulieve and Curaleaf despite trailing them in portfolio weight. Glass House Brands is the outlier, trading above its price target with implied downside of 22% - a reminder that rescheduling optimism does not lift every stock uniformly, and that valuation still matters even in a sector-wide rally.
- MSOS assets under management stood at $1.13 billion as of June 5
- The DEA hearing is scheduled for June 29, with proceedings expected to conclude by mid-July
- Schedule III reclassification for medical cannabis already allows deduction of ordinary business expenses under 280E
What Operators Should Watch Next
Retail sentiment on platforms like Stocktwits shows extremely bullish positioning around MSOS, Trulieve, and Green Thumb, but enthusiasm among retail traders is not the same as regulatory certainty. Dispensary operators and compliance teams should treat the hearing outcome as a catalyst to monitor, not a foregone conclusion to plan around. Tax treatment, banking access, and interstate licensing rules remain in flux, and any uplisting wave will still require individual companies to meet exchange governance and reporting standards - a process that takes months, not headlines.
