Trump Considers Downgrading Marijuana Classification: WSJ

US President Donald Trump is reportedly considering reclassifying marijuana as a less dangerous drug, which could make it easier to buy and sell. This change would impact publicly traded companies in the space, including Aurora Cannabis, Canopy Growth, and Tilray. However, the decision is still in debate, and a shift in classification has not yet been confirmed.

US President Donald Trump is reportedly considering reclassifying marijuana as a less dangerous drug, which could significantly impact the cannabis industry and publicly traded companies such as Aurora Cannabis, Canopy Growth, and Tilray. This potential change would ease the buying and selling of cannabis, making the industry more profitable [1].

Trump expressed interest in this reclassification at a $1 million-a-plate fundraiser in New Jersey, where he discussed the possibility of moving marijuana from the list of Schedule I controlled substances to a Schedule III drug [1]. This change would align marijuana with substances that have known medical benefits and a lower potential for abuse, such as codeine and anabolic steroids [2].

The Biden administration had previously considered reclassifying marijuana but did not implement the change before leaving office. Several bills introduced in Congress by Democrats and Republicans have sought to lower the classification of marijuana or remove it from the list of controlled substances altogether [1]. However, these measures have not yet been signed into law.

Currently, marijuana is legal on some level in 40 states, the District of Columbia, and four U.S. territories for medical use. Additionally, 24 states and Washington, D.C., have legalized recreational marijuana [2]. If Trump's proposal is enacted, it could further accelerate the legalization and normalization of cannabis in the United States.

The cannabis industry has seen substantial growth in recent years, with companies like Tilray and Canopy Growth reporting strong financial results. For example, Tilray reported a net revenue of $821 million and a gross margin increase of 700 basis points in the fiscal year 2025 [3]. Similarly, Canopy Growth reported a 24% year-over-year increase in cannabis revenue in the first quarter of fiscal 2026 [4].

While the reclassification of marijuana could boost the cannabis industry, it is important to note that the decision is still in debate and has not yet been confirmed. The federal government's classification of marijuana remains a Schedule I drug, and any changes would require legislative action.

References:
[1] https://www.foxbusiness.com/politics/trump-considers-reclassifying-marijuana-less-dangerous-drug
[2] https://www.yahoo.com/news/articles/trump-might-hasten-marijuana-reclassification-233123580.html
[3] https://ir.tilray.com/news-releases/news-release-details/tilray-brands-reports-fourth-quarter-and-fiscal-2025-financial
[4] https://www.morningstar.com/news/business-wire/20250808830468/canopy-growth-reports-first-quarter-fiscal-2026-financial-results-cannabis-revenue-increased-24-year-over-year