Cannabis stocks surge after US president considers reclassification.
During a White House briefing on Monday, Trump indicated that he would decide on the legal status of the drug within the next few weeks.
“We hope to reach a decision that is in the best interest of the nation,” Trump stated. “This is a complex matter.”
Trump noted that while he has heard positive remarks about medical cannabis, he remains concerned about its other uses.
“Some people support it, while others oppose it,” he remarked. “There are concerns about its impact on children and the elderly.”
Following Trump’s announcements, shares in cannabis-related companies experienced a notable increase.
Tilray Brands, based in New York, saw nearly a 42% rise in their stock value, while Village Farms International and Canopy Growth Corp saw increases of approximately 34% and 26%, respectively.
These comments came in response to The Wall Street Journal’s report last week, which claimed that Trump expressed interest in reclassifying cannabis at a recent fundraising event.
Although cannabis is legal in 24 US states, including for recreational purposes, it remains a federally regulated illicit substance.
Presently, cannabis is categorized as a Schedule I substance, alongside heroin, LSD, and ecstasy, indicating “no accepted medical use and a high risk of abuse.”
Former President Joe Biden also considered reclassifying cannabis to Schedule III—meaning a “moderate to low potential for physical or psychological dependence”—but was unable to enact the change before his term ended in January.
