Cannabis Stocks Surge: Trump’s Potential Marijuana Reclassification Sparks Market Frenzy
Trump is reportedly considering reclassifying marijuana from Schedule I — the strictest category, alongside heroin and LSD — to Schedule III. This change could:
Facilitate access to banking services and institutional investment.
Reduce tax burdens by exempting cannabis businesses from Section 280E of the federal tax code.
Encourage mergers and consolidations within the industry.
Boost the share prices of companies like Tilray, Cronos, Aurora Cannabis, Village Farms, and others, as well as the MSOS ETF, which have already surged sharply.
However, it’s not all good news: conservative sectors and MAGA figures are raising objections, arguing that such a move could “normalize” consumption and erode cultural values.
Source: Yahoo Finanzas Bloomberg.com 6The Wall Street Journal Axios.
Cannabis stocks soared this week after reports revealed that Donald Trump is considering reclassifying marijuana from Schedule I — the same category as heroin and LSD — to Schedule III. This potential change could transform the cannabis industry, opening access to banking services, attracting institutional investment, and providing significant tax relief. But is this the breakthrough the industry has been waiting for, or just a political maneuver in an election season?
A Historic Political Shift
Reclassifying marijuana to Schedule III would be the most significant federal change in decades. While President Biden initiated steps toward rescheduling, his administration never completed the process. Now, reports suggest Trump could finalize the move “within weeks.” Industry leaders are already increasing lobbying efforts, and cannabis companies have contributed heavily to political campaigns, betting on a friendlier regulatory environment.
Why the Market Reacted So Strongly
Tax Relief: Reclassification would exempt cannabis businesses from IRS Code 280E, which currently prevents them from making standard business deductions.
Banking Access: Major banks could finally work with cannabis companies without fear of federal repercussions.
Investment Opportunities: Institutional investors would have a clearer path to enter the industry.
The immediate impact was visible: major cannabis stocks and the MSOS ETF surged, with some companies posting double-digit gains in a single day.
Criticism and Political Resistance
Not everyone is celebrating. Trump’s potential shift has drawn criticism from his own MAGA base, with some arguing it could normalize drug use and erode conservative values. In addition, Congress remains divided on cannabis policy, and the DEA must still play a role in the reclassification process.
Opportunity or Political Smoke?
If Trump follows through, the move could trigger a new growth phase for the cannabis industry — from domestic expansion to international market penetration. But if it’s simply a calculated political gesture, the current market euphoria could vanish just as quickly as it appeared.
Conclusion
The cannabis sector has waited decades for a change of this magnitude. Now the question is: Will this be the wave that carries the industry into a new era, or just political smoke that disappears before reaching the shore?