U.S. regulators and national cannabis advocates have been meeting to discuss the best way forward for federal cannabis regulation, a report says.
The Alcohol and Tobacco Tax and Trade Bureau, a unit of the Treasury Department, has been meeting with groups including the Drug Policy Alliance and the National Cannabis Roundtable to talk about cannabis regulations.
Conversations are focused largely on issues like advertising, labeling and enforcement, according to Politico.
The Drug Policy Alliance says it is the country's leading organization to promote drug policies that are "grounded in science, compassion, health and human rights."
The National Cannabis Roundtable says its goal is to advance 21st-century cannabis policy in the U.S.
Cannabis legislation has been moving forward at the state level with increasing frequency. New York in March became the the 16th state, plus the District of Columbia, to legalize recreational marijuana.
The move could bring in $350 million a year in taxes for New York once recreational cannabis is fully legalized, Gov. Andrew Cuomo's office estimates.
About one in three Americans live in a state with legal sales of recreational cannabis, according to the Institute on Taxation and Economic Policy.
Cannabis is still illegal at the federal level, which has contributed to volatility for stocks in the sector.
"It's not that it's fully federally legal, but it's really, frankly, an opportunity for investors," Tim Seymour of Amplify Seymour Cannabis ETF (CNBS) - Get Amplify Seymour Cannabis ETF Report said of investing in cannabis stocks.
Cannabis stocks were falling on Wednesday. At last check Aurora (ACB) - Get Aurora Cannabis Inc. Report was off 4.5%, Aphria (APHA) - Get Aphria Inc Report gave up 5.2%, Canopy Growth (CGC) - Get Canopy Growth Corporation Report fell 2.4% and Tilray (TLRY) - Get Tilray Brands Inc. Report dropped 5.8%.