Marijuana Capital Markets: Bright 2025 Outlook Amid Regulatory Shifts
The cannabis capital markets are getting ready for what could be their most transformative period. With the 2024 election cycle underway, changes in the regulatory landscape could significantly boost investor confidence and support the industry’s growth in 2025. As MJBiz Daily reported, although marijuana stocks, including the AdvisorShares Pure US Cannabis ETF (NYSE:MSOS), remain 85% below their all-time highs, a maturing market valued at $32.1 billion in 2024 is positioning itself for new growth.
Election Momentum And Market Evolution
In recent years, cannabis investors have eagerly anticipated reforms to federally legalize or regulate cannabis. Following the 2020 election, optimism surged, especially with the Biden administration’s promise of federal cannabis reform. Yet, as inflation rose and interest rates climbed in 2022, optimism decreased and the cannabis market’s growth stumbled. A temporary spike in marijuana use during the pandemic left many mature markets with inflated expectations, which led to year-over-year sales declines in legacy markets like California and Colorado.
Promising Catalysts: Rescheduling and Banking Reform
A key regulatory milestone on the horizon is federal rescheduling, which would remove cannabis from its Schedule 1 classification. This change would lift the heavy