Cannabis stocks and ETFs have surged over the past few months since the Department of Health and Human Services asked the DEA to review its classification of cannabis. Earlier this month, a group of 12 state attorneys general sent a letter to the DEA supporting the reclassification.

Even though 24 states and Washington, D.C., have all legalized weed for recreational use, it remains illegal on the federal level. It is currently classified as a Schedule I drug, alongside heroin and LSD.

The new designation would place it in the same category as anabolic steroids, testosterone, and ketamine.

Cannabis companies currently face adverse taxation, lack access to the financial system, and their shares mostly trade over-the-counter or on Canadian exchanges.

Industry participants and investors were earlier hopeful for a more rapid path to full federal legalization under the Biden administration, but not much progress has been made so far.

The SAFER Banking Act, which would allow cannabis companies to use major financial and banking institutions, passed in the Senate Banking Committee in September, but its fate remains uncertain.

US cannabis companies, particularly multistate operators like Green Thumb Industries (GTBIF Quick QuoteGTBIF - Free Report) , Curaleaf Holdings (CURLF Quick QuoteCURLF - Free Report) and Verano Holdings (VRNOF Quick QuoteVRNOF - Free Report) , could be the biggest beneficiaries of any reform.

To learn about the AdvisorShares Pure US Cannabis ETF (MSOS Quick QuoteMSOS - Free Report) , the ETFMG U.S. Alternative Harvest ETF (MJUS Quick QuoteMJUS - Free Report) and the Roundhill Cannabis ETF (WEED Quick QuoteWEED - Free Report) , please watch the short video above.