Trump expected to soften on marijuana restrictions, surge in cannabis business stocks

United States President Donald Trump is expected to reclassify marijuana as a Schedule 3 drug, making it dramatically easier for companies that supply it to do business.

New schedule

News outlets such as CBS News and Reuters reported on Dec. 12 that U.S. President Trump was considering announcing an executive order to reclassify marijuana from a Schedule I drug to a Schedule III.

This removes it from the most restrictive category of drugs, but stops short of legalising it federally.

Schedule I drugs are considered to be drugs with no medical or therapeutic benefit and have a high potential for abuse, such as heroin and fentanyl.

Schedule III drugs, on the other hand, are defined as substances that are considered to have some medical purpose, as well as a lower potential for abuse than Schedule I or II drugs.

Drugs in that category include anabolic steroids and ketamine.

State by state

Marijuana is not legal federally in the U.S., but several U.S. states have legalised its use for “medical” purposes.

In such states, the drug has gone from an underground substance to one being sold openly from storefronts.

But such sellers have faced a multitude of difficulties, including the lack of access to banking and associated payment systems, making them reliant on cash and vulnerable to robbery.

Schedule III reclassification would not solve that problem, but it would make such a company's expenses tax exempt, and could be the first stage towards a gradual lowering of barriers to the industry. ​

Stock surge

Marijuana related companies’ stocks surged on Dec. 12, with share prices jumping by as much as 32.5 per cent.

One expert CBS spoke to called it the “single most important drug policy move in decades”.

However, another warned that it would be a “false flag” and that it might make businesses vulnerable to other federal crimes.

The move, which could come as soon as Dec. 15, comes amidst rhetoric aimed at heating up the U.S.’s war on drugs.

One of Trump’s first actions upon returning to office in January 2025 was to raise tariffs on China, Canada, and Mexico, ostensibly on concerns that they were aiding the import of narcotics in the U.S, such as fentanyl.

More recently, the U.S. military has been attacking boats emanating from Venezuela, which the Trump administration accuses of trying to smuggle drugs such as cocaine into the U.S.

Top image via White House/Facebook & Unsplash