Trump’s Marijuana Move Sparks Cannabis Stock Surge: Regulatory Shift Ahead?

Political winds shift, markets react—cannabis stocks just caught a major updraft.

The Catalyst: Policy Over Politics

Forget campaign promises. This is about tangible regulatory change hitting the tape. Reports of a planned easing of federal restrictions sent a clear signal: the legal and financial landscape for cannabis is primed for transformation. It's not just about decriminalization; it's about unlocking capital flows, banking access, and interstate commerce that have been choked for years.

Market Mechanics in Motion

Watch the tickers jump. This isn't retail speculation—it's institutional money positioning for a sector-wide rerating. The move telegraphs reduced compliance overhead and opens doors to traditional financing that has skirted the industry. Suddenly, balance sheets look different, and growth projections get revised upward overnight.

The Bigger Picture: A New Asset Class Emerges

This transcends a single sector pop. It's a case study in how policy directly manufactures market value. A regulatory green light can do more for a company's prospects than a year of earnings calls—something crypto natives understand all too well. The playbook feels familiar: watch the legislation, then watch the capital follow.

One cynical take? Wall Street finally found a vice it can endorse—once it's properly regulated and monetized, of course. The real test comes next: whether the momentum holds after the headlines fade, or if this is just another politically-fueled pump waiting for a sober reality check.

TLDR

• Trump pushes to reclassify marijuana as a Schedule III drug, easing restrictions.
• Tilray Brands sees a 28% surge in premarket trading on the news.
• Easing federal restrictions may help cannabis firms access funding more easily.
• Cannabis market expected to reach USD 73.6 billion by 2027.

Shares of cannabis companies saw a significant surge on December 12, 2025, following reports that former President Donald TRUMP intends to ease federal restrictions on marijuana. This move could potentially pave the way for a major shift in the cannabis industry. The news raised investor optimism, especially as it may open doors for easier access to funding and reduced oversight of marijuana-related businesses.

Trump’s Plan to Reclassify Marijuana

According to a report by The Washington Post, Trump is expected to direct U.S. agencies to reclassify marijuana as a Schedule III drug. Currently, cannabis is classified as a Schedule I substance under federal law, meaning it is considered to have no accepted medical use and a high potential for abuse. Reclassifying it to Schedule III WOULD place marijuana in the same category as some prescription painkillers, such as hydrocodone, which would reduce regulatory hurdles.

The MOVE could significantly alter the landscape for cannabis companies, making it easier for them to operate and expand. “We believe this would open the door for pharmaceutical companies to seek approval for more cannabis products, which could then be dispensed the same as other prescription drugs,” said Jaret Seiberg, an analyst at TD Cowen, in a note.

Market Reactions to the News

In response to the news, U.S.-listed cannabis companies saw substantial gains. Shares of Tilray Brands increased by 28%, while other companies such as SNDL Inc and Canopy Growth also saw their stock prices rise by 13.5% to 32.5% in premarket trading. These gains reflect growing investor confidence that the federal government may soon take a more lenient approach to marijuana regulations.

Cannabis companies have long faced challenges due to federal restrictions, particularly in securing financing. Banks and institutional investors have largely avoided the sector, fearing legal and regulatory risks. As a result, many cannabis producers have relied on high-interest loans or alternative sources of funding. Trump’s proposal, if enacted, could lead to more favorable conditions for cannabis businesses, as reduced restrictions may encourage traditional financial institutions to engage with the sector.

Potential Impact on Cannabis Industry Growth

The cannabis industry has been expanding rapidly since Uruguay legalized recreational cannabis in 2013, followed by Canada’s full legalization in 2018. Other countries such as Malta, South Africa, and Mexico have also taken steps toward legalization. Within the United States, cannabis is legal for medicinal use in 38 states and recreational use in 24 states.

Analysts believe that the global cannabis market has significant growth potential. A projection from Grandview Research estimates the sector could be worth $73.6 billion by the end of 2027, with a compound annual growth rate (CAGR) of 18.1%. Some projections suggest even higher growth, with the global cannabis market reaching $97.35 billion by 2026.

However, the U.S. market remains fragmented due to varying state laws and federal restrictions. Despite this, Trump’s plan to ease federal restrictions could provide a more stable environment for growth, reducing barriers to entry for new businesses and making it easier for existing companies to scale.

Challenges for Cannabis Producers

While easing restrictions could benefit cannabis companies, challenges remain. One of the biggest hurdles is securing funding. Many cannabis producers struggle with limited access to capital due to the ongoing federal restrictions. Additionally, cannabis businesses are often subject to higher taxes and financial scrutiny compared to other industries, which has led some companies to remain cautious in their expansion plans.

Trump’s push to reclassify cannabis could help address these issues by making it easier for cannabis companies to secure loans and attract investors. The potential reclassification may also result in lower taxes for cannabis businesses, which would further improve the financial outlook for the industry.