Trump Pushes for Major Federal Marijuana Reclassification
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The Schedule III Shift
President Donald Trump is reportedly planning to push for a substantial loosening of federal marijuana regulations by reclassifying the drug from Schedule I to Schedule III. According to The Washington Post, this would place cannabis in the same regulatory category as certain prescription painkillers and other controlled substances, significantly reducing federal oversight.
Right now, marijuana sits in Schedule I alongside heroin and LSD, which is somewhat awkward given that dozens of states and Washington, D.C., have legalized medical marijuana programs, and 24 states have approved recreational use. The disconnect between federal classification and state-level reality has been glaring for years.
Trump discussed the reclassification plan with House Speaker Mike Johnson (R-LA) in a recent phone call, according to the report. It's worth noting that this wouldn't legalize or decriminalize marijuana at the federal level. What it would do is expand access for researchers and almost certainly increase profitability for licensed cannabis businesses operating in legal markets.
The president had signaled his interest in reclassification back in August and indicated he wanted to complete the process that former President Joe Biden had started during his administration.
Regulatory Whiplash for Cannabis Companies
The potential reclassification comes at an interesting moment for the cannabis industry. In November, Congress passed a funding bill that included a provision to re-criminalize several THC-infused and hemp-derived products, creating concern across the sector about regulatory tightening.
Yet despite these headwinds, several cannabis stocks have shown resilience. Tilray Brands Inc. (TLRY), Cronos Group Inc. (CRON), Organigram Global Inc. (OGI), and SNDL Inc. (SNDL) have continued to demonstrate improvement in momentum rankings, according to market data.
Kim Rivers, CEO of Trulieve Cannabis Corp (OTC:TCNNF) and vice chair of NCR, called Trump's potential endorsement a "sea change" in cannabis policy. That's not hyperbole when you consider how long the industry has operated in federal limbo, with state-legal businesses unable to access basic banking services or take standard tax deductions because of their Schedule I status.
The regulatory environment for cannabis has always been contradictory, but a Schedule III classification would at least acknowledge the reality that marijuana isn't quite the same as heroin, even if it doesn't fully resolve the legal patchwork that's developed across the country.
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