Cannabis investors are anxiously waiting for these developments to happen.

Tilray  (TLRY) is a cannabis market leader in Canada and Europe. However, shares of the company — along with other pot stocks — have been on a losing streak in recent years.

This downward trend is due both to fading hopes that the U.S. and other governments will legalize marijuana and to general weakness in the market.

However, recently, cannabis investors have had a glimmer of hope. Here are three catalysts that could send Tilray's stock skyrocketing.

1. U.S. Federal Legalization

At the beginning of April, the U.S. House of Representatives passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, a bill that would decriminalize marijuana.

This is the second time the bill has made its way through the House — in 2020, the MORE Act passed in the House but stalled in the Senate.

Getting the bill — or any other cannabis bills that the House has passed — through the evenly divided Senate will be a challenge. Still, Senate Majority Leader Chuck Schumer, a cannabis proponent, and his colleagues are in the process of consulting with Republican senators, encouraging them to vote for the MORE Act.

Tilray is the cannabis market leader in Canada, where recreational marijuana use has already been legalized. It also has brands well positioned in the U.S.: SweetWater Brewing Co, Breckenridge Distillery, and Manitoba Harvest.

Tilray also partially acquired MedMen, which has strong penetration in the U.S. cannabis retail market. According to CEO Irwin Simon, MedMen is critical to Tilray's goal of becoming the market leader in the U.S. once legalization occurs.

2. SAFE Banking Act

Many hedge funds and other institutional investors have shied away from investing in Tilray and other cannabis stocks due to the illegal status of cannabis.

In addition, banks are also reluctant to offer basic services, from holding deposits to issuing credit cards, to cannabis companies.

The Secure and Fair Enforcement (SAFE) Banking Act, which has already passed in the House of Representatives six times, would fling the gates for investment by large firms wide open.

According to CEO Simon Irwin, for TIlray, the importance of the SAFE Banking Act is clear: Tilray needs to make more money. Today, the vast majority of the company's float is owned by retail investors. With the help of investment from large institutions, Tilray will be able to more easily generate cash for its acquisition strategies and pay its debts.

While the future of the act still remains unclear, some experts believe it may be passed before actual federal legalization occurs.

3. Legalization in Germany

Germany is set to fully legalize cannabis within two years. The country is already Europe's largest cannabis market, and Tilray is the market leader. According to German Chancellor Olaf Scholz, the consequences of legalization will be evaluated after four years and he believes that legalization will ensure quality and prevent the proliferation of illegal substances among youth.

When legalization occurs in Germany, it will facilitate Tilray's strategic expansion further into Europe, increasing the capabilities of the company's brands and strongly accelerating its growth.