Having second thoughts, President Trump looks to reclassify Cannabis

Cannabis stocks surged Friday after reports that President Donald Trump is considering directing his administration to reclassify marijuana as a less dangerous drug, potentially marking a significant shift in U.S. policy.

Tilray Brands (NASDAQ: TLRY) stock jumped 28%, while Aurora Cannabis (NASDAQ: ACB) rose 15%, Canopy Growth (NASDAQ: CGC) gained 20%, SNDL Inc (NASDAQ: SNDL) advanced 19%, and Cronos Group (NASDAQ: CRON) climbed 14% following the news.

According to a report from Bloomberg News, citing people familiar with the matter, Trump has discussed reclassifying marijuana from a Schedule I drug to a Schedule III substance with marijuana industry executives, Health and Human Services Secretary Robert F. Kennedy Jr., and Centers for Medicare & Medicaid Services Administrator Mehmet Oz.

Cannabis is currently classified as a Schedule I drug, placing it in the same category as heroin and LSD – substances deemed to have no medical use and high potential for abuse. A reclassification to Schedule III would group marijuana with drugs considered to have lower dependency potential, such as ketamine and Tylenol with codeine.

The potential rescheduling would ease restrictions on buying and selling cannabis, representing a major victory for the industry, investors, and medical marijuana patients. However, a White House official noted that no final decisions have been made regarding the reclassification.