Cannabis Capital Access Is Improving, But Still Uneven: Part 3

Rescheduling changes how cannabis is classified, but it does not yet fully change how the financial system interacts with it.

Adult-use cannabis remains a Schedule I substance. As a result, Bank Secrecy Act and anti-money laundering requirements still apply to financial institutions working with cannabis businesses. This includes enhanced due diligence, transaction monitoring, and suspicious activity reporting.¹

Rescheduling does not remove those obligations. The SAFER Banking Act has not been passed. Without a federal safe harbor, most large banks continue to avoid the sector. Cannabis operators still rely on a limited group of community banks, state-chartered institutions, and credit unions willing to manage the compliance requirements.²

Additional legislation has been introduced. The CLIMB Act, reintroduced in March 2026 by Guy Reschenthaler and Troy Carter, would extend safe harbor beyond banking. The proposal includes protections for broker-dealers, exchanges, clearing firms, and other market participants. It would also allow U.S. exchanges to list cannabis companies without federal liability.³

U.S. cannabis operators have largely been limited to over-the-counter markets or Canadian exchanges. Listing on major U.S. exchanges such as the New York Stock Exchange or Nasdaq has remained restricted due to federal classification. The CLIMB Act would address that directly if enacted.⁴

On the payments side, the shift away from cash continues with growing resources. This trend existed prior to rescheduling and reflects operational and security considerations more than policy changes.

Broader access to capital markets would depend on additional steps, either through legislation or further regulatory changes. Potential outcomes include expanded institutional participation and improved liquidity, but those outcomes are not in place today. The current structure remains uneven.

Financial access is limited relative to other regulated industries, and the difference in federal treatment between medical and adult-use cannabis adds complexity for institutions evaluating the sector.

Strategizing Exposure: Active Management in a Volatile Space

Given the complexities of state-versus-federal regulations and the volatility of the cannabis industry, active management is a critical tool for navigating this sector.

 AdvisorShares provides three distinct pathways for professional portfolios: 

1. Pure U.S. Exposure | AdvisorShares Pure US Cannabis ETF (MSOS): The largest U.S.-focused cannabis ETF, concentrated in top MSOs with scale and market share. 

2. Global Diversification | AdvisorShares Pure Cannabis ETF (YOLO): Provides exposure to both U.S. and international cannabis markets. 

3. Magnified Exposure | AdvisorShares MSOS Daily Leveraged ETF (MSOX): A daily leveraged ETF for sophisticated investors seeking to amplify exposure or overweight the theme with less cash. 

Are Your Clients Positioned for the Rescheduling Shift?

As the federal landscape evolves, the gap between cannabis "potential" and "performance" is narrowing. Schedule time with us to learn how our actively managed strategies can fit into a diversified portfolio and what makes our approach to cannabis investing different.