One of the largest U.S. cannabis chains, Cresco Labs, on Wednesday reported $43 million in sales for 2018. Including the sales of its soon-to-be-acquired peer Origin House, revenue would have been $76 million.

Chief executive Charlie Bachtell told his conference call listeners that he’s optimistic that the federal government will ease its cannabis prohibitions in the next 12 to 18 months. Federal legalization has bipartisan support among 2020 election candidates, even in our highly-divided country. “From a political standpoint,” said Bachtell, “the positive momentum is certainly accelerating.”

His Chicago-based company’s stock (ticker: CRLBF or CL.Canada) is up 4% to $12.63, on the over-the-counter market. Up nearly threefold this year, the stock has been one of the best performers among the U.S. multistate cannabis businesses.

The 2018 sales reported by Cresco and other U.S. sellers are overtaking those of most pot producers in Canada, despite the Canadian advantage of nationwide legality. America’s economy is ten-times the size of its northern neighbor, of course, but the NYSE and Nasdaq won’t list U.S. cannabis companies while pot remains illegal under federal law. That leaves the likes of Cresco to list on less liquid venues like the Canadian Securities Exchange and the U.S. OTC Market Group.

So Canadian firms like Tilray (TLRY) enjoy a capital markets advantage. Tilray had 2018 revenue of $43 million—and a loss larger than its sales—but its Nasdaq-listed shares enjoy a market cap near $5 billion. Cresco made a $4 million profit on a similar level of 2018 sales, but has a market cap of $3.5 billion.

Unlike some U.S. rivals, like Curaleaf Holdings (CURLF) or Harvest Health & Recreation, Cresco declined to give guidance on 2019 sales.

Read our recent cover story: You’d Have to Be High to Buy American Marijuana Stocks

Cresco operates 22 retail locations, but will have licenses for 56 when it closes a Florida merger with VidaCann. Its Origin House deal will make Cresco the largest distributor of cannabis products in California, selling cannabis smokes and edibles through hundreds of other dispensaries.

Bachtell said Cresco plans to leverage that distribution network to sell versions of its product that would contain just CBD—the newly legalized derivative of hemp, which doesn’t make you high. Cresco’s CBD offerings could introduce consumers to its brands by selling through unregulated channels like drugstores and mass-merchandisers.

The Cresco chief is excited about the prospects for legalization at the federal and state levels. He noted that a U.S. congressional committee recently approved a bill that would allow banks and brokers to process transactions for cannabis sellers. It’s only the third time that a cannabis bill has advanced to a floor vote in the House.

In Illinois, Bachtell served on the transition team of new Governor JB Pritzker, who’s committed to making Illinois the next state to legalize adult recreational use. “Eight of the 11 states in which we operate have already, or are in the process, of evaluating regulated adult use,” Bachtell told conference call listeners

Write to Bill Alpert at william.alpert@barrons.com