There's been excitement in recent months over news that the U.S. government may be looking at rescheduling cannabis, so that it is no longer a Schedule I substance. Many pot stocks, even Canadian ones, have jumped on the news. But the CEO of Tilray Brands (TLRY 3.66%), one of the largest cannabis companies in the world, knows that rescheduling cannabis wouldn't necessarily benefit his company directly.

Rescheduling will help the industry, but investors shouldn't expect it to help Canadian pot stocks

Rescheduling marijuana, while it would be a positive step for the marijuana industry, may not mean a whole lot for Canadian cannabis stocks. That's because while it would help improve access for people in the U.S., it wouldn't necessarily pave the way for Canadian cannabis companies to do business south of the border. Legalization is a whole other beast, and simply rescheduling cannabis wouldn't be enough to open the doors to Canadian pot companies.

 

 

 
 
 
 
 
 
 
In a recent interview with BNN Bloomberg, Tilray Brands CEO Irwin Simon admitted as much, stating that it "clears up a lot of confusion and it's great for the industry." But he also pointed out that it wouldn't do anything for Tilray today: "Today, direct benefit, absolutely not."

While Simon was talking specifically about Tilray, the reality is that other Canadian cannabis companies are in the same boat. Until U.S. marijuana legalization actually takes place and Canadian companies can enter the market, any change with respect to rescheduling marijuana will only benefit businesses that are already operating in the U.S. It won't open up any doors on its own.

Investors may read into the rescheduling of pot as a possible first step toward nationwide marijuana legalization, but that's a big assumption to make. When it comes to passing legislation, especially related to cannabis, investors shouldn't assume anything is a guarantee. At best, it could still take years for significant reform to take place