Cannabis stocks were surging last week on the news that the Drug Enforcement Administration (DEA) is going to reclassify marijuana. It will no longer be a Schedule I drug alongside heroin and LSD. Instead, it will be moved to Schedule III, where ketamine and certain anabolic steroids are grouped.

Usually, when there's some positive news around marijuana reform, shares of Tilray Brands (NASDAQ: TLRY) and Canopy Growth (NASDAQ: CGC) skyrocket. But before you consider buying shares of these pot stocks, there are three things you need to know.

Rescheduling marijuana isn't the same as legalization. It doesn't even mean that legalization is imminent. While it may seem that way, any change in government policy can take a long time. President Joe Biden asked the Department of Health and Human Services (DHHS) to review marijuana's classification back in October 2022. While the review did help lead to the current situation and the rescheduling of marijuana, it took a year and a half to get to this point.

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Source Fool.com