Big Shift In US Drug Policy? Trump Likely To Ease Curbs On Marijuana Use And Sales, Pot Stocks Fly High

(MENAFN- Live Mint) Marijuana could soon be treated as a less dangerous drug under US law, as President Donald Trump is expected to direct one of the biggest federal shifts in cannabis policy in decades.

Trump has reportedly 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, Bloomberg reported.

However, a White House official said that no final decisions have been made on rescheduling, The Washington Post reported on the administration's plans.

Cannabis stocks surge on speculation

Amid speculation of the reclassification decision, shares of cannabis companies have surged in premarket trading.

Tilray Brands Inc gained 33% as of 8:22 AM in New York and Canopy Growth Corp advanced 27% at the same time.

While marijuana is still illegal at the federal level, state rules vary widely. According to the National Conference of State Legislatures, more than 40 states and the District of Columbia permit the medical use of the substance, and roughly half have allowed recreational usage of the substance.

How is Cannabis currently labelled?

Cannabis is currently classified as a Schedule I drug, placing it in the same category as heroin and LSD, which are substances deemed to have no medical use and a high potential for abuse.

Trump is considering pushing to reclassify marijuana as a Schedule III drug, which would move it to a tier reserved for substances seen as having a lower potential for addiction, such as ketamine, Tylenol with codeine, and anabolic steroids.

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Such a shift would significantly ease restrictions on buying and selling cannabis, marking a major win for marijuana companies and investors in the sector as well as patients who use the substance for medical needs, Bloomberg reported.

The industry has long lobbied for federal reform, and the reclassification decision could reduce tax burdens, remove barriers to banking services, attract mainstream lenders, and expand opportunities for medical research.

When is the reclassification likely to happen?

Attempts to pass federal legislation decriminalizing marijuana have so far made little progress. And while Trump may push for changes, potentially even through an executive order, any rescheduling would likely only take effect after the government finishes a rulemaking process that has been on hold since January.

Trump publicly acknowledged deep divisions over the issue in August, saying a decision on marijuana's classification could come within weeks. He noted that supporters of the reclassification had stressed that cannabis has medical benefits, while opponents warned that easing restrictions posed a risk to children.

Reclassification faces opposition

The push to reclassify marijuana gained momentum under President Joe Biden after the Justice Department in 2024 recommended moving cannabis to Schedule III, prompting a formal review by the Drug Enforcement Administration.

However, progress has since been stalled amid legal challenges and bureaucratic delays, leaving both the issue and the industry stuck in limbo.

People who oppose the reclassification have said the Biden administration's case for the change relied on flawed reasoning and downplayed health risks.

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The decision comes as Trump's administration has sought to crack down on drug trafficking and taken a tougher stance on another drug, fentanyl.

In July this year, Trump signed legislation that permanently classified all fentanyl-related substances as Schedule I drugs, increasing penalties for trafficking, according to Bloomberg.

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