Cannabis stocks have been struggling for years. Since 2021, the AdvisorShares Pure US Cannabis ETF has declined by more than 75%. With no serious movement on marijuana reform at the federal level, despite more states legalizing medical and recreational use, investors have become frustrated with the industry. The red tape makes it difficult for cannabis companies to operate efficiently, and many remain unprofitable.

There is, however, a potential catalyst on the horizon this year which could give the industry a much-needed boost, and which may help cannabis stocks rise in value. Given that it is an election year, cannabis may benefit from some positive developments in the months ahead.

President Joe Biden recently held his State of the Union address, and what got the attention of many cannabis investors was the mention of marijuana. It's not something the president normally discusses, but in his speech, he highlighted police reform and reviewing the classification of marijuana and stated that "no one should be jailed for using or possessing marijuana."

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Source Fool.com