Trump wants to loosen the classification, and marijuana stocks are booming collectively
The Zhitong Finance App learned that several local US media reported that US President Donald Trump is expected to push for the reclassification of marijuana as a “less harmful drug.” This latest market dynamic undoubtedly directly contributed to the sharp rise in US marijuana producers' stocks in pre-market trading on Friday. The top gainers include Tilray Brands (TLRY.US) surging more than 30% before the market, Canopy Growth (CGC.US) up 23%, Aurora Cannabis (ACB.US) up 20%, SNDL (SNDL.US) rising 14%, and Cronos Group (CRON.US) rising 12%
According to media reports, Trump is considering drastically changing marijuana from “Schedule I” (Schedule I) — which indicates no medical use and has high potential for abuse — to “Schedule III” — a category of substances with low dependency and addictive potential.
According to reports, earlier on Thursday local time, Trump spoke with US House Speaker Mike Johnson, Secretary of Health and Human Services (HHS) Robert F. Kennedy Jr., Director of the Center for Health Insurance and Medicaid Services (CMS) Mehmet Oz, and several cannabis industry executives to discuss the matter.
However, according to the report, a senior White House official contacted said that Trump himself has yet to make a final executive decision.
Schedule III drugs have generally accepted medical uses, but there is still the possibility of minor abuse and the risk of physical or psychological dependence. Examples include ketamine, anabolic steroids, and Tylenol, which contains codeine. Schedule I drugs mainly include LSD and heroin.
In March 2024, the Department of Justice during the Biden administration proposed reclassification of marijuana to Schedule III. However, the US Drug Enforcement Administration (DEA) first rescheduled the hearing and then completely cancelled the hearing on the matter.
During the 2024 US presidential campaign, Trump publicly promised to “unlock the medical use of marijuana and reclassify it as a Schedule III drug.” Reclassification can not only reduce criminal consequences for personal use, but also remove certain federal tax and business barriers (such as allowing cannabis companies in the US to deduct commercial expenses), improve the business environment, and benefit companies and their practitioners that support the legal marijuana industry.
Prior to Trump's official nomination as Secretary of Health and Human Services in 2024, JFK Jr. had repeatedly called for an end to the criminalization of marijuana and the implementation of a regulated legal sales system. His views were viewed as relatively open by some reformers and industry supporters. During the Senate confirmation hearing, Kennedy stated that HHHS will “listen to and review scientific data on marijuana reclassification” in the future and will make judgments based on reviews already existing by professional agencies such as the DEA, rather than voluntarily proposing legislation or drastic administrative relaxation.