The cannabis sector is about to see some dramatic changes over the next few quarters, which could push sector stocks significantly higher, predict four of the key CEOs in the space.
“Buckle up,” said Green Thumb (GTBIF) CEO and founder Ben Kovler in his company’s second-quarter earnings call on August 4. “We think the next six months could potentially be the most significant in the cannabis landscape in the last 12 years.”
Of course, CEOs are naturally optimistic by nature. But their claims here are not all far-fetched. They recently outlined eight bullish trends that suggest it could make sense to get some cannabis exposure in the current sector weakness. (The AdvisorShares Pure U.S. Cannabis exchange-traded fund (MSOS) is down 8% this year.)
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Here’s one of the bigger trends that they think will help their stocks.
The Looming Hemp Ban Will Boost Cannabis Company Sales Big Time
November 12 will bring the end to a federal loophole that effectively legalizes hemp-derived THC products. This elimination of competing products like popular hemp-derived THC drinks will boost sales at publicly traded cannabis companies significantly. It may also help reverse the nagging problem of cannabis price deflation that has hurt companies for several years now.
To get an idea of the size of the impact, consider how big the hemp-derived THC product market has become.
“Hemp is everywhere, in every market. You can’t go anywhere without bumping into hemp products across the whole country,” lamented Curaleaf (CURLF) CEO Boris Jordan in his company’s second-quarter earnings call in early August. He thinks the hemp market is worth $25 billion a year in sales. For context, U.S. legal cannabis sales were $29.1 billion in 2025.
Since the hemp-based THC product market is so big, when it goes away, it could produce 10% to 15% organic growth for the industry next year, says Jordan. “I know I’m one of the few people in the industry who thinks this, but I do think it might bring not only stabilization, but potentially an increase in pricing next year.”
For a state-level view, let’s turn to Trulieve (TRLV) CEO Kim Rivers. Her company is the biggest medical cannabis supplier in Florida. “In Florida, the regulated medical marijuana market has a little over 700 store locations across the state. We estimate that the smoke shop or hemp storefront portfolio is about 7,000 in Florida,” she says. She says the hemp market in her state does $4 billion a year in revenue, compared to $2 billion in medical cannabis sales.
The Texas hemp-based THC market is even bigger, she estimates. This matters for investors, because Texas is one of the key states expanding its medical cannabis market, thereby unleashing cannabis companies like Trulieve to grab hemp sales. Rivers puts hemp-derived THC product sales at $6 billion. “It’s going to be interesting to see what happens in Texas with the hemp changes and the reduction in product availability that has gone into effect recently.” Trulieve is laying the groundwork to be a big medical cannabis supplier in Texas.
Recent Ohio sales trends give us a glimpse of the potentially big impact from a nationwide hemp ban. “Following the state’s ban on intoxicating hemp, Ohio’s regulated market has grown more than 10%,” says Kovler.
The hemp ban might help Virginia operators in particular. “Given Virginia’s location in the Southeastern Mid-Atlantic corridor, you have a very vibrant intoxicating hemp market,” says Green Thumb president Anthony Georgiadis. “If the loophole does in fact close in November, we think that could materially impact demand, which would put probably incremental pressure on the supply side.” Green Thumb is one of the big players in the state.
Despite a lot of speculation to the contrary, make no mistake, the hemp loophole won’t be getting any extensions, says Jordan. “We believe there’s virtually zero risk of that extension. There will be no extension.”
The bottom line: Cannabis stocks may be a buy ahead of this trend.
For more detail on other investable big-picture trends from cannabis CEOs and insiders in other sectors, subscribe to Cabot Insider Edge here.
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