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Cannabis stocks surge after reports of Trump planning to ease federal restrictions
Reclassification to Schedule III could boost medical research, ease banking, and lift cannabis sector growth to 20% annually, with stocks rising over 30% on news.
- On Dec. 10, President Donald Trump discussed reclassifying marijuana and reports say he plans an executive order directing federal agencies to move it to Schedule III.
- Federal law currently treats cannabis as Schedule I, blocking research, interstate commerce and banking access, while the industry has languished amid regulatory uncertainty, oversupply and limited financing in recent years.
- Traders piled into cannabis ETFs and major stocks, pushing heavy-volume rallies Friday as the AdvisorShares Pure US Cannabis ETF jumped more than 50% to around $5.71, Tilray Brands traded at $11.85 up $3.42, and Aurora Cannabis climbed nearly 18% to about $5.35.
- Rescheduling would remove the 280E tax penalty and could lift after-tax profits by 40% to 70%, ease research and pharmacy dispensing with Medicare and Medicaid coverage, though no final decisions exist and Drug Enforcement Administration rulemaking is required.
- Rescheduling would stop short of federal legalization, which U.S. Congress must enact, and analysts say it could double industry growth to 20% annually but delay effects 12 to 18 months; despite Friday’s bonanza, broad cannabis indices remain down more than 90% from pandemic peaks.
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The actions of Canadian cannabis companies have increased following reports that US President Donald Trump is considering relaxing federal restrictions on cannabis.
·Montreal, Canada
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Big shift in US drug policy? Trump likely to ease curbs on marijuana use and sales, pot stocks fly high
President Trump may push to reclassify marijuana from Schedule I to Schedule III, easing restrictions on its sale and use. This development sent pot shares soaring.
·New Delhi, India
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Cannabis stocks surge after reports of Trump planning to ease federal restrictions
TORONTO - Shares in Canada's cannabis companies surged after reports U.S. President Donald Trump is planning to ease federal restrictions on the drug.
·Waterloo, Canada
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Coverage Details
Total News Sources15
Leaning Left6Leaning Right1Center2Last UpdatedBias Distribution67% Left
Bias Distribution
- 67% of the sources lean Left
67% Left
L 67%
C 22%
11%
Factuality
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