The prices of cannabis stocks are increasing rapidly, thanks to positive changes in regulations in the United States. The Tilray Brands and Aurora Cannabis stocks have reached their highest levels in months, rising more than 50% from their lowest points this year.

Aurora Cannabis, as well as other companies like Cronos Group and Canopy Growth, have also seen significant increases in their stock prices in recent days.

There are two main reasons for the soaring prices of cannabis stocks. The first reason is related to potential changes in the classification of cannabis by the Drug Enforcement Agency in the US. This change could have a positive impact on the industry

In addition, there are indications that the Senate may pass federal cannabis laws in the near future. Senator Chuck Schumer is working to pass a bill that will make it easier for banks to provide services to cannabis companies, which has been a challenge due to current regulations.

Positive developments in Germany have also contributed to the rise in cannabis stocks. The country recently passed a bill to legalize the recreational use of cannabis, which is set to start in April. This move aims to reduce the black market in Germany.

Despite the positive regulatory changes, investing in Tilray Brands and Aurora Cannabis stocks carries risks. While the recent legislation is favorable for the industry, there is no guarantee that broader cannabis legislation will pass in the US, especially with opposition from Republicans.

Investors in Tilray and Aurora Cannabis should be cautious of the Fear of Missing Out (FOMO) trend in the industry. Both stocks have experienced significant price fluctuations in the past, so there is a possibility of a sharp reversal in the coming weeks as regulatory optimism fades.