Trump Mulls Marijuana Reclassification Amid Mixed Views on Medical Benefits

President Trump considers reclassifying marijuana as a less dangerous drug, with a decision expected within "the next few weeks." Trump acknowledges marijuana's potential medicinal benefits, particularly for pain relief, but expresses concerns about its potential for abuse. Marijuana is currently classified as a Schedule I drug, the most restrictive category, alongside heroin and LSD. Critics argue that this classification is outdated and fails to recognize marijuana's medicinal benefits and relative safety compared to other Schedule I substances.

President Donald Trump is reportedly considering reclassifying marijuana as a less dangerous drug, with a decision expected within the next few weeks. This potential policy shift comes as Trump acknowledges marijuana's potential medicinal benefits, particularly for pain relief, but expresses concerns about its potential for abuse. Marijuana is currently classified as a Schedule I drug, the most restrictive category, alongside heroin and LSD.

The potential reclassification, which would move marijuana to Schedule III, could significantly ease federal restrictions on buying and selling cannabis products. This could boost profitability across the industry, which has faced significant regulatory hurdles despite growing state-level legalization. Other major cannabis companies, such as Canopy Growth (TSX:WEED) (NASDAQ:CGC), Tilray (TSX:TLRY) (NASDAQ:TLRY), Cronos (TSX:CRON) (NASDAQ:CRON), Aurora Cannabis (NASDAQ:ACB), and SNDL (NASDAQ:SNDL), have seen their stock prices surge in response to the news [1].

Trump's interest in reclassifying marijuana is not new. A year ago, he stated that his return to the White House would usher in a new era for marijuana, making it easier for adults to access safe products and giving states more freedom to legalize it. He also stated his intention to legalize recreational marijuana in Florida and focus on medical research [2].

The Biden administration had previously initiated efforts to reclassify marijuana but did not complete the process before leaving office. A federal reclassification would represent a major milestone for the cannabis industry. However, the issue has highlighted deep divisions within Trump’s team, with some advisors arguing that easing restrictions on marijuana could help bolster Republican support ahead of the midterm elections, while others argue that it could backfire politically [2].

The stock price movements reflect investor optimism about potential federal reforms that could open new markets and reduce operational complications for cannabis businesses operating across state lines. However, the final decision remains uncertain, and the cannabis industry will continue to closely monitor the situation.

References:
[1] https://ca.investing.com/news/stock-market-news/pot-stocks-soar-as-trump-considers-marijuana-reclassification-93CH-4149996
[2] https://lavocedinewyork.com/en/politics-en/2025/08/09/trump-considers-reclassifying-marijuana-as-a-schedule-3-drug/