Cannabis Stocks 2025: Why the 'Green Rush' May Be More Mirage Than Gold Mine

U.S. cannabis investors hoping for a breakout year in 2025 are facing yet another reality check. The promise of federal reform keeps dangling in front of investors, but cannabis stocks continue their brutal selloff. Despite ongoing federal rescheduling discussions and the prospect of banking reform, the AdvisorShares Pure US Cannabis ETF (MSOS) has plunged 24.51% year-to-date through August 2025, extending a painful 51.72% decline over the past 12 months.

The sector's continued freefall comes even as the cannabis rescheduling process inches forward under the Trump administration, highlighting a disconnect between legislative hopes and market reality that has plagued investors for years. This persistent gap between political promises and stock performance suggests that regulatory catalysts alone may not be enough to reverse the industry's fortunes.