The strong rise in pot stocks has been attributed to investor optimism about federal marijuana legalization.

The Alternative Harvest ETFIt gained over 10% in March and is on track for its highest month since February 2021. Although the exchange-traded fund had been flat for most of 2018, it was down half a percent over the last 12 months. Similar to last year’s gains in marijuana shares, the recent rise mirrors similar moves.

The House Rules Committee will hold a hearing Wednesday on the Marijuana Opportunity Reinvestment and Expungement Act. This bill would remove federal cannabis decriminalization. The bill — better known as the MORE Act — would also create provisions for banking and consumer packaged goods sales. This measure will likely be put to a vote in the House on Friday.

I’m very positive about the MORE Act being passed by the House. CNBC spoke with Ed Perlmutter (D-Colo.), ahead of the hearing. In the slim Democratically-controlled Senate, there is uncertainty about what will happen to this bill.

Perlmutter has always supported legalization of cannabis. Perlmutter was a member the Rules panel, and is also a co-sponsor the MORE Act. The Secure and Fair Enforcement Banking Act is also sponsored by Perlmutter. It’s a bill that legalizes cannabis and allows multistate lenders access to banks and financial services. In 2012, Washington and Colorado became the first two states to allow recreational marijuana use.

Perlmutter said, “We are confident that something will move this year.” It’s easier for banks, other financial institutions and credit unions to do business in cannabis-related businesses than it is for insurance companies, banks, credit unions, mortgage companies, or real estate firms. The industry would be able to get on its feet.

The MORE Act passed the Democratic-controlled House in December 2020 in a 228-164 vote largely divided along party lines. It was rejected by the Senate’s Republican majority.

Jaret Seiberg from Cowen calls Wednesday’s House vote “symbolic” and says Democrats would require at least 10 Republican senators to override a filibuster. He said that the House debate might prove to be insightful, especially with November’s midterm elections.

Seiberg stated in a last week note that “there is a high likelihood that Republicans will control Congress next year.” The debate will allow us to find out how many people support legalization, even if we object to the MORE Act. This is especially important if the Senate votes Republican and the House turns Republican. This would allow for the next year’s cannabis legislation to be passed.

Minority leader on the Senate side Chuck SchumerSen. Cory BookerSenator. Ron WydenD-Ore. sponsored the Cannabis Administration and Opportunity Act. This is just one of several cannabis bills that are currently in circulation.

Canopy GrowthDavid Klein, CEO of Canopy said that federal legalization will be a transformative event for Canada-based business in the eyes investors. Canopy acquired MSO Acreage at $3.4 billion in 2019. It sells Martha Stewart’s CBD line in America and also bought Wana, a U.S.-based cannabis edible brand. in a $298 million dealOct 2021

Canopy shares rose by 13% during the month. They’ve fallen nearly 8% over the last year, and are down 74% for the past twelve months.

It would enable us to incorporate businesses such as Wana or Acreage in our organization. [profit and loss]It could be run more as a single entity, making it exciting for investors. Klein stated that it would show us already have a mature and growing U.S. multistate presence.” Klein said to CNBC.

Constellation BrandsCanopy’s 36% ownership is owned by Stifel, the giant spirits and beer company. Andrew Carter, a Stifel analyst, predicted that drinkable cannabis with a higher margin would experience a faster growth rate in 2022. Headset data shows that the U.S. market for drinkable cannabis is currently 1%.

Klein stated, “We have always been very bullish about drinks.” We are seeing new customers enter the category via edibles and beverages. The category will see more newcomers as it indexes in edibles, and beverages.

According to Tuesday’s Bank of America note, Schumer’s CAOA bill should be in the Senate by April end.

Most industry analysts see the path to legalization as a difficult one. But, there is hope that significant steps will be made to make it happen.