Trump Administration Considers Reclassifying Marijuana, Sparking Rally in Cannabis Stocks

Marijuana stocks surged Monday amid reports the Trump administration is weighing a potential reclassification of cannabis under federal law. Tilray Brands, Cronos Group, and smaller players like Canopy Growth and Aurora Cannabis posted double-digit gains, while the AdvisorShares Pure U.S. Cannabis ETF jumped 25%.

"We’re looking at reclassification, and we’ll make a determination over the next few weeks," President TRUMP said at a press conference. Currently classified as a Schedule I drug—alongside heroin and LSD—marijuana faces severe restrictions on research and harsh penalties. A move to Schedule III would ease those barriers, unlocking institutional investment and accelerating medical studies.

The industry has long lobbied for this shift, which WOULD align federal policy with the 45 states that have already legalized cannabis for medicinal or recreational use. Ketamine and testosterone, both Schedule III substances, face fewer regulatory hurdles—a precedent that could reshape the $30 billion U.S. cannabis market.