President Donald Trump may announce the reclassification of marijuana next Monday, according to multiple reports. This unexpected decision, which departs from his position during his first administration, has already had an impact on the markets and has once again placed cannabis at the center of the political and economic debate in the country.
Thursday evening, Washington Post He announced that the president would communicate to various federal agencies his intention to move marijuana from the category of the most dangerous substances – where it is found with heroin – to Schedule III, a classification shared by painkillers such as Tylenol with codeine or certain steroids. A few hours later, Axios confirmed that the measure could take place early next year.
The market reacted immediately. Tilray Brands, one of the most recognized cannabis producers, surged more than 30% in pre-market trading. Canopy Growth and SNDL also saw double-digit gains, while specialty funds, like the Amplify Seymour Cannabis ETF, rose more than 19%, after five years of losses.
According to News weekTrump addressed the issue Wednesday from the Oval Office in a call that included House Speaker Mike Johnson; Secretary of Health Robert F. Kennedy Jr.; Medicare and Medicaid Director Mehmet Oz; already a leader in the cannabis industry. The discussion gave the impression that the government could fine-tune the final details of the reclassification.
Trump had already flirted with the idea of reclassifying marijuana during his campaign, promising to “focus on research to unlock medical uses” of the plant, if he succeeded in reclassifying it as a substance with low addictive potential. In August, he confirmed that he was exploring the change, and in September, he released a video suggesting that Medicare cover CBD products.
The move would represent a sort of continuation of the efforts of President Joe Biden, who began a similar process in 2023 but failed to conclude it before the end of his term. It is also a turnaround from the policy of his first administration, in which he put an end to the friendly policy established under the presidency of Barack Obama.
Today, the issue separates Trump from more conservative Republicans, while polls suggest Americans favor a shift toward cannabis. A poll by the consulting and research firm Gallup found that 64 percent of respondents support the legislation, a trend that has been growing for decades. Two dozen states, as well as several territories and Washington, D.C., have already legalized recreational use.
On the other hand, liberal groups like the Progressive Turnout Project, a Democratic PAC, have accused the president of trying to steal marijuana reform while capitalizing on a popular issue among young voters.
What would reclassification mean?
Placing cannabis on Schedule III would not make it or its recreational use legal nationwide. There would be no total decriminalization, but a considerable relaxation of regulations. The new category would reduce surveillance, facilitate medical research – limited due to regulations – and ease the tax burden on companies in the sector.
Currently, securing investment remains one of the biggest hurdles for producers, who rely on costly loans and alternative lenders due to federal banking restrictions.
Even though reports suggest that there will be an official announcement, the road to reclassification is still long. If the president’s order comes in January, the Drug Enforcement Administration (DEA) will have to begin a regulatory process that analysts say could peak this summer, if the White House doesn’t change its mind first.
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