President Donald Trump signed an executive order on Thursday, directing federal agencies to loosen regulations on marijuana, marking one of the most significant shifts in federal cannabis policy in decades.
To Promote ‘Medical Uses’ of Marijuana
The order directs U.S. Attorney General Pam Bondi to expedite the process of rescheduling marijuana to Schedule III under the Controlled Substances Act. This would put the popular psychoactive substance right alongside other common painkillers, which means it still falls short of full legalization.
Marijuana is currently classified as a Schedule I substance, a category reserved for drugs deemed to have no accepted medical use and a high potential for abuse.
See Also: High Hopes: Pot Stocks Blaze As Trump Eyes Rescheduling
According to the White House Fact Sheet, the order is aimed at removing barriers to scientific research and improving guidance for patients and healthcare providers.
The order said marijuana’s legal classification had limited research for decades, constraining studies on safety, effectiveness and long-term health outcomes, and added that reclassification would allow researchers to use real-world evidence to better assess impacts on vulnerable populations, including adolescents and young adults.
Improving Access To CBD Products
The order also outlines steps to improve access to hemp-derived cannabinoid products, particularly cannabidiol, or CBD. While CBD products are not controlled substances under federal law, they currently lack a clear regulatory pathway through the Food and Drug Administration.
It directs the White House Deputy Chief of Staff for Legislative, Political, and Public Affairs to work with Congress to expand access to appropriate full-spectrum CBD products while restricting those that pose serious health risks.
Washington Split Over Trump’s Decision
Senate Minority Leader Chuck Schumer (D-N.Y.) supported Trump’s order, calling it “a step in the right direction,” on Thursday, in a post on X.
The Democratic Senator from New York also added that more work needs to be done to “decriminalize cannabis, ease overly restrictive banking regulations that stall industry progress in states where it is legal, and rectify the harms done by the War on Drugs.”
Members of Trump’s own party, however, opposed the move, with Senator Ted Budd (R-N.C.) issuing a statement calling the order a “shortsighted policy decision” that will have detrimental effects on the nation’s youth.
“We should not be handing tax breaks to bad actors and foreign drug cartels to advertise a drug that will harm Americans,” Budd said, in a statement on Thursday.
Cannabis Stocks Soar, Then Retreat
The announcement initially sent several cannabis stocks higher before gains faded by the close, a move analysts attributed to the absence of any cannabis banking provisions in the order, which the industry had been expecting, according to a Reuters report.
| Stocks / ETFs | 1 Day | Month-To-Date | Year-To-Date |
| Tilray Brands Inc. (NASDAQ:TLRY) | -4.19% | +57.80% | -15.48% |
| Aurora Cannabis Inc. (NASDAQ:ACB) | -3.41% | +18.76% | +19.56% |
| SNDL Inc. (NASDAQ:SNDL) | -1.45% | +21.42% | +7.37% |
| Canopy Growth Corp. (NASDAQ:CGC) | -11.98% | +49.55% | -41.32% |
| AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS) | -26.91% | +27.01% | +19.85% |
However, almost all major cannabis stocks are up significantly this month, in anticipation of Trump’s move throughout the past couple of weeks.
The AdvisorShares Pure U.S. Cannabis ETF scores high on Momentum in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the fund, its peers and the broader industry.
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