Summary
Cannabis stocks rallied after news broke that President Trump is weighing an executive order to reclassify marijuana as a Schedule III drug. The potential shift would move cannabis out of the most restrictive federal category, reduce regulatory and tax burdens, and open the door for broader medical research and industry growth. While no final decision has been made, the development has reignited optimism across the U.S. cannabis sector and sent major marijuana stocks sharply higher.
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📚 Deep Dive 📚
Marijuana Stocks Jump as Trump Weighs Major Policy Shift
Cannabis stocks rallied sharply today after reports surfaced that President Trump is considering a major change to federal marijuana laws.
According to multiple reports, Trump is exploring an executive order that would move marijuana from Schedule I to Schedule III under the Controlled Substances Act. While no final decision has been made, the news alone was enough to send pot stocks soaring.
Stocks React Immediately
Investors rushed into cannabis names on the headline:
- Tilray Brands (TLRY) surged 32%
- Canopy Growth (CGC) jumped 36%
- Aurora Cannabis (ACB) gained 14%
- SNDL (SNDL) climbed 21%
- Cronos Group (CRON) rose 8%
The White House later confirmed that discussions are ongoing, but emphasized that nothing has been finalized yet.
What Does “Schedule III” Actually Mean?
Marijuana has been classified as a Schedule I drug since the 1970s, putting it in the same legal category as heroin and meth. Schedule I drugs are defined as having no accepted medical use and a high potential for abuse.
That classification has limited research, increased taxes on cannabis companies, and created major hurdles for businesses operating legally at the state level.
If marijuana is moved to Schedule III, it would instead be grouped with drugs like:
- Tylenol with codeine
- Testosterone
- Certain anabolic steroids
This would be a massive shift in how the federal government treats cannabis.
Why This Matters So Much
A move to Schedule III could:
- Reduce heavy federal taxes on cannabis companies
- Make it easier for banks and payment processors to work with the industry
- Expand medical research and prescriptions
- Give legal cannabis businesses a clearer path to growth
For many in the industry, this change is seen as long overdue and supported by people across both political parties.
Behind the Scenes: Who’s Involved?
Reports say Trump has discussed the idea with:
- Health Secretary Robert F. Kennedy Jr.
- CMS Administrator Dr. Mehmet Oz
- Cannabis executives, including Trulieve CEO Kim Rivers
- Payments industry leaders, including Howard Kessler
- House Speaker Mike Johnson
During one call, Speaker Johnson reportedly argued against easing restrictions, citing research and policy concerns. Cannabis executives were then given the chance to respond — and observers say Trump appeared persuaded by their arguments by the end of the conversation.
Not a New Idea — Just a Stalled One
This isn’t the first time Schedule III has been on the table. In 2024, the Justice Department recommended reclassifying marijuana, which triggered a review by the DEA.
However, legal challenges and government delays have kept the process stuck — leaving cannabis companies and investors in limbo.
What Happens Next?
If Trump moves forward, an executive order could arrive within the next few weeks, directing federal agencies to begin the reclassification process.
While nothing is official yet, the market reaction shows just how important this decision could be for the future of U.S. cannabis.
For now, all eyes are on the White House.