President Donald Trump signed an executive order Thursday directing federal agencies to relax marijuana regulations, marking one of the most significant shifts in federal cannabis policy in decades.
To promote ‘medical use’ of marijuana
The order directs the U.S. Attorney General Pam Bondi to expedite the process of rescheduling marijuana to Schedule III under the Controlled Substances Act. This would put the popular psychoactive substance alongside other common painkillers, meaning it is still not fully legalized.
Marijuana is currently classified as a Schedule I substance, a category reserved for drugs that are considered to have no accepted medical use and a high potential for abuse.
See also: High expectations: Pot stocks flare as Trump reshuffles his plans
According to the White House fact sheet, the order is intended to remove barriers to scientific research and improve guidance for patients and healthcare providers.
The order said marijuana’s legal classification had limited research for decades, limiting studies of safety, effectiveness and long-term health outcomes, adding that reclassification would allow researchers to use real-world evidence to better assess the impact on vulnerable populations, including adolescents and young adults.
Improving access to CBD products
The decision also outlines steps to increase access to hemp-derived cannabinoid products, specifically cannabidiol, or CBD. Although CBD products are not controlled substances under federal law, they currently lack a clear regulatory pathway through the Food and Drug Administration.
It directs the White House Deputy Chief of Staff for Legislative, Political and Public Affairs to work with Congress to expand access to appropriate full-spectrum CBD products while limiting those that pose serious health risks.
Washington divided over Trump’s decision
Senate Minority Leader Chuck Schumer (DN.Y.) supported Trump’s order, calling it “a step in the right direction” in a post on X on Thursday.
The Democratic senator from New York also added that more work needs to be done to “decriminalize cannabis, relax overly restrictive banking regulations that slow the industry’s progress in states where it is legal, and repair the damage done by the War on Drugs.”
However, members of Trump’s own party, along with the senator, opposed the move Ted Budd (RN.C.) issues a statement calling the order a “short-sighted policy decision” that will have detrimental effects on the country’s youth.
“We should not give tax breaks to bad actors and foreign drug cartels to promote a drug that harms Americans,” Budd said in a statement Thursday.
Cannabis stocks rise and then retreat
The announcement initially sent several cannabis stocks higher before gains faded at the close, a move analysts attributed to the order’s lack of any cannabis banking provisions, which the industry had expected, according to a Reuters report.
| Stocks/ETFs | 1 day | Month-to-date | Year-to-date |
| Tilray Brands Inc. (NASDAQ:TLRY) | -4.19% | +57.80% | -15.48% |
| Aurora Cannabis Inc. (NASDAQ:ACB) | -3.41% | +18.76% | +19.56% |
| SNDL Inc. (NASDAQ:SNDL) | -1.45% | +21.42% | +7.37% |
| Canopy Growth Corp. (NASDAQ:CGC) | -11.98% | +49.55% | -41.32% |
| AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) | -26.91% | +27.01% | +19.85% |
However, almost all major cannabis stocks have risen significantly this month, anticipating Trump’s moves in recent weeks.
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