Cannabis stocks have been hard hit by the broader market weakness in 2022, as evident from AdvisorShares Pure Cannabis ETF’s (YOLO) 17% decline year-to-date. The delay in the federal legalization of marijuana has also contributed to the bearish sentiment surrounding the industry.
However, many regulators have been working on legalizing marijuana in the U.S. soon, with Senator Chuck Schumer gearing up to introduce the Cannabis Administration and Opportunity Act (CAOA) bill this year. Congress is expected to announce marijuana reforms this spring, with both Democrats and Republicans backing the legalization of cannabis use in the country. Currently legal in 18 states and decriminalized in 13 more, cannabis sales are expected to surpass $28.30 billion in 2022.
