Under the proposal, cannabis would be reclassified from a so-called Schedule I drug, which are considered highly additive with no medical benefits, to a Schedule III, signifying it has moderate to low potential for physical and psychological dependence.

Cannabis stocks including Tilray, Curaleaf, and the AdvisorShares Pure US Cannabis ETF rallied on Thursday after the U.S. Department of Justice unveiled a historic proposal to ease restrictions on ma…