President Donald Trump on Monday floated — but stopped short of promising — a rethink of marijuana’s federal status, sending cannabis stocks from high hopes to a harsh comedown.
Speaking in the Oval Office, Trump said his administration is “considering” reclassifying marijuana as a less dangerous drug, a softer tone than earlier reports from The Washington Post suggesting an executive order was imminent. Those earlier headlines briefly sparked a rally in weed stocks before reality set in.
The Biden administration had previously pushed to move marijuana from Schedule I — a category reserved for drugs like heroin and LSD — to Schedule III, alongside substances such as steroids. That effort stalled before the finish line.
Trump framed the potential shift as a research issue. Reclassification, he said, would unlock “tremendous amounts of research that can’t be done unless you reclassify,” adding that the idea is being looked at “very strongly.”
Investors, however, were less convinced. The lack of a firm commitment sent cannabis shares sliding. Tilray Brands plunged 20 percent, while Canopy Growth fell 4.6 percent by the close.
For cannabis companies, a move to Schedule III would be more than symbolic. It would ease tax burdens, reduce regulatory friction, and open the door to broader medical research — long constrained by marijuana’s federal classification.
Despite widespread state-level legalization for medical and recreational use, marijuana remains illegal under U.S. federal law. Until that contradiction is resolved, the industry remains caught between political buzz and regulatory reality — and, on Monday, markets chose sobriety.
