Marijuana could soon be treated as a less dangerous drug under US law as President Donald Trump is expected to lead one of the biggest federal shifts in cannabis policy in a decade.
Trump reportedly discussed the idea with marijuana industry executives, Health and Human Services Secretary Robert F. Kennedy Jr. and Center for Medicare & Medicaid Services Administrator Mehmet Oz, Bloomberg reported.
But a White House official said no final decisions had been made on the reassignment, The Washington Post reported on the administration’s plans.
Cannabis stocks surge on speculation
Shares of cannabis companies rose in premarket trading amid speculation about the reclassification decision.
Tilray Brands Inc gained 33% as of 8:22 a.m. 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 medical use of the substance, and about half have permitted recreational use of the substance.
How is cannabis currently labeled?
Cannabis is currently classified as a Schedule I drug, putting it in the same category as heroin and LSD, which are substances that 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 the level reserved for substances with a lower potential for addiction, such as ketamine, Tylenol with codeine and anabolic steroids.
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Such a move would greatly ease restrictions on the purchase and sale of cannabis, a big win for marijuana companies and investors in the sector, as well as for patients who use the substance for medical purposes, Bloomberg reported.
The industry has long lobbied for federal reform, and a reclassification decision could reduce the tax burden, remove barriers to banking services, attract mainstream lenders and expand opportunities for medical research.
When is reclassification likely to occur?
Attempts to pass federal legislation decriminalizing marijuana have so far made little progress. And while Trump can push for changes, potentially through an executive order, any rescheduling would likely not take effect until after the administration completes the rulemaking process, which has been on hold since January.
Trump publicly acknowledged deep divisions over the issue in August, saying a decision on marijuana classification could come within weeks. He noted that proponents of reclassification emphasized that cannabis has medicinal benefits, while opponents warned that easing restrictions posed a risk to children.
Reclassification is met with resistance
The push to reclassify marijuana gained momentum under President Joe Biden after the Justice Department recommended moving cannabis to Schedule III in 2024, prompting a formal review by the Drug Enforcement Administration.
However, progress has since stalled due to legal challenges and bureaucratic delays, leaving both the issue and the industry in limbo.
People who oppose the reclassification said the Biden administration’s case for the change relied on flawed reasoning and downplayed the health risks.
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The decision comes as the Trump administration has sought to crack down on drug trafficking and taken a tougher stance on another drug, fentanyl.
This past July, Trump signed legislation that permanently classifies all fentanyl-related substances as Schedule I drugs, increasing penalties for trafficking, according to Bloomberg.
