:max_bytes(150000):strip_icc()/marijuana-buds-with-marijuana-joints-825336438-5d6333bdf45f4404b4d92586ce5d90f2.jpg "Marijuana Stocks Are Soaring Friday on Anticipation Trump Could Soon Make This Change")
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Key Takeaways
- President Donald Trump could reportedly issue an executive order to reclassify marijuana as a less dangerous substance as soon as Monday.
- The news sent shares of companies in the marijuana industry skyrocketing Friday.
Cannabis stocks surged Friday following reports President Donald Trump could soon reclassify marijuana as a less dangerous substance.
Tilray Brands (TLRY) was up close to 30% in recent trading, while Canopy Growth (CGC) shares jumped nearly 40%. (Read our daily markets coverage here.)
President Trump could be set to issue an executive order changing the classification of marijuana from a Schedule I drug such as heroin to a less dangerous Schedule III drug as soon as Monday, CNBC reported, citing sources familiar with the matter. Other Schedule III drugs include medicines such as steroids and codeine.
Axios reported the reclassification could take place next year.
A White House spokesperson told Investopedia no final decisions have been made.
Why This Is Important
Making marijuana a Schedule III drug would reduce financial and regulatory pressures on producers, and could expand financial access for cannabis companies.
Marijuana remains illegal under federal law despite being legalized on the state level in most U.S. states and territories for medicinal or recreational use. Its classification as a Schedule I drug, which ties back to the Controlled Substances Act of 1970, restricts research on it as a medicine and comes with more stringent penalties for illegal activities related to it. Heroin, cocaine, and LSD are also in this category.
A lower classification would be a boon to the cannabis industry, as it would lower taxes and lift banking rules that have restricted use of credit cards and other financial activities.
