Cannabis Stocks Surge on Reported Trump Plans to Reclassify Drug

President Trump is considering reclassifying marijuana from a Schedule I to a Schedule III drug, a move that could significantly reshape the federal marijuana policy and the cannabis industry. This potential reclassification would ease federal restrictions, allowing cannabis companies to take normal business tax deductions and improving their profitability, which has triggered a sharp surge in cannabis stocks such as Curaleaf, Green Thumb Industries, Verano Holdings, Trulieve Cannabis, Tilray Brands, Canopy Growth, and Aurora Cannabis. Although the policy shift would not legalize recreational marijuana nationwide, it represents the most substantial federal change since marijuana was first banned, balancing medical benefits with societal concerns. The Trump administration’s interest follows a stalled rescheduling process initiated under the Biden administration, reflecting a bipartisan recognition of the issue’s importance. Cannabis industry experts describe the reclassification as a potential "gamechanger" for the roughly $80 billion market, encouraging new investments and possibly attracting institutional capital. However, reclassification authority lies with the Attorney General and the DEA, so Trump’s support alone cannot enact the change, but it significantly brightens the outlook for the sector's growth and investor interest.