Cannabis companies saw a powerful rally on Friday following a report that former U.S. President Donald Trump plans to push for substantial easing of federal marijuana restrictions. According to the Washington Post, Trump is preparing an executive order that could dramatically shift how cannabis is regulated at the national level.
Shares of major cannabis players soared in early trading. Tilray Brands jumped 35%, while SNDL, Canopy Growth, and the AdvisorShares Pure U.S. Cannabis ETF (MSOS) posted gains ranging from 20% to more than 30%. The move reflects investor optimism that a pivotal regulatory change may finally be approaching for an industry long constrained by federal law.
CNBC reported that the executive order could come as early as Monday, although a White House official emphasized that final decisions have not yet been made. The Washington Post noted that Trump aims to direct federal agencies to reclassify marijuana as a Schedule III substance. This would move it out of the strictest regulatory category—Schedule I—where it currently sits alongside heroin and LSD.
A shift to Schedule III would place cannabis on par with widely prescribed pain medications, dramatically reducing federal controls. Analysts argue such reclassification would unlock opportunities for pharmaceutical companies to pursue cannabis-based medications and distribute them through standard prescription channels.
Jaret Seiberg of TD Cowen wrote that the change could pave the way for broader commercial development and significantly ease the industry’s operational burdens. Lower taxes, reduced legal risk, and improved access to financial services would represent major catalysts for growth.
Financing remains one of the most persistent challenges for U.S. cannabis operators. Because marijuana is federally illegal under Schedule I classification, most banks and institutional investors avoid the sector. As a result, companies typically rely on high-interest loans or alternative lenders, limiting their expansion capacity.
Analysts say that easing restrictions could spark several downstream effects, including additional state legalization efforts, the passage of federal “safe banking” measures, and the eventual uplisting of U.S. cannabis companies onto major stock exchanges.
The potential policy shift also ties into developments under the Biden administration. Last year, the White House asked the Department of Health and Human Services to reassess marijuana’s federal classification, and the agency recommended moving cannabis from Schedule I to Schedule III.
If Trump proceeds with the reclassification directive, it could mark one of the most significant federal policy changes in the history of the U.S. cannabis market—reshaping investment access, regulatory oversight, and long-term industry growth.
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