Catenaa, Friday, December 12, 2025- Shares of cannabis stocks surge on the possible reclassification of marijuana as a less dangerous drug by President Donald Trump.
Bloomberg reported that Trump has discussed the idea with marijuana industry executives, Health and Human Services Secretary Robert F. Kennedy Jr., and Centers for Medicare & Medicaid Services Administrator Mehmet Oz.
Cannabis is currently labeled a Schedule I drug, putting it in the same category that includes substances like heroin and LSD, categorized as having no accepted medical use and a high potential for abuse.
Trump is weighing pushing to reclassify it to a Schedule III drug, according to the people, which would move it to a tier for substances seen as having a lower potential for dependency — on the same level as ketamine, Tylenol with codeine, as well as anabolic steroids.
Reclassification would make it easier to buy and sell cannabis, delivering a major victory for companies and investors in the sector as well as patients who use medical marijuana.
Cannabis companies have been lobbying for reform in Washington, and a reclassification decision could ease tax burdens and obstacles to banking services, help draw more mainstream lenders and investors, and bolster opportunities for medical research.
Shares of Tilray Brands gained over 33% on Friday, while shares of Canopy Growth gained over 34%.
US legislation around cannabis is a patchwork. Though it’s banned federally, states differ widely in terms of legalization. More than 40 states and the District of Columbia allow marijuana use for medical purposes, according to the National Conference of State Legislatures, while about half allow for recreational usage.
Efforts to pass federal legislation decriminalizing marijuana have so far yielded little progress.
While Trump may seek changes to the current status, including through an executive order, rescheduling would likely only take effect after the government finishes a rulemaking process that has been on hold since January.
