Why Cannabis Stocks Jumped By Double Digits And Why Analysts Say ‘Don’t Drink The Kool-Aid In One Gulp’
After months of sluggish performance, cannabis stocks finally showed signs of life. This week, the U.S. cannabis sector surged double digits, fueled by new buzz around federal reform and the reemergence of an unlikely political player: Donald Trump.
The rally was led by the AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS), which jumped roughly 12.5% since Monday. At the time of publication, it had reclaimed its 50-day moving average for the first time since the 2024 election. But whether this move has real legs or is just another hype-fueled head fake depends on what happens next in Washington.
The Trump Factor
According to The Marijuana Herald, President Trump is privately urging members of Congress to pass cannabis banking reform before the 2026 midterms. Two senior Senate staffers told the outlet that Trump began contacting lawmakers directly this week, encouraging them to prioritize the SAFER Banking Act or similar legislation.
This follows earlier reporting—later confirmed by CNN—that Trump’s team tried to include SAFE banking language in a December 2024 funding resolution. While he hasn’t made public comments since retaking office, Trump’s campaign previously pledged to support “safe …