Cannabis Stocks Retreat Amid Uncertainty Over Trump’s Potential Marijuana Reclassification Order
Cannabis stocks reversed early gains on Monday as uncertainty loomed over a potential executive order from President TRUMP to reclassify marijuana from a Schedule I to a Schedule III drug. Shares of Tilray Brands (TLRY) fell nearly 5%, while Canopy Growth (CGC) slipped 3%, reflecting market skepticism after initial optimism.
The anticipated reclassification WOULD ease tax burdens and banking restrictions for cannabis companies, offering significant financial relief. Despite state-level legalization in most U.S. jurisdictions, federal prohibition remains a barrier, amplifying the sector's regulatory challenges.
The WHITE House declined to confirm the order's timing, leaving investors in limbo. A Schedule III designation would align marijuana with less dangerous substances like steroids, marking a pivotal shift in federal drug policy.
