Major Shift Looms as Trump Eyes Cannabis Reclassification to Schedule III

The United States could soon see a historic change in its drug policy. According to Bloomberg, President Donald Trump is considering a move to reclassify marijuana under federal law. This would shift cannabis from its current status as a highly dangerous substance to a less restrictive category. The potential decision marks one of the most significant federal cannabis policy shifts in decades.A White House official told The Washington Post that no final decision has been made. However, the administration has reportedly discussed the idea with key officials and industry figures. This long-awaited change would have profound implications for businesses, patients, and the legal landscape nationwide.

Cannabis Stocks Surge Amid Policy Speculation

News of the possible reclassification sparked immediate market reaction. Shares of major cannabis companies soared in premarket trading. Tilray Brands Inc. jumped 33%, and Canopy Growth Corp. advanced 27%.This investor optimism stems from the drastic change the move represents. Marijuana is currently a Schedule I drug. This places it alongside heroin and LSD. Substances in this category are deemed to have no accepted medical use and a high potential for abuse.Reclassification to Schedule III would be a game-changer. This tier includes drugs like ketamine and Tylenol with codeine. They are seen as having a lower potential for addiction. The shift would ease many federal restrictions stifling the industry.

Unlocking Industry Growth and Medical Research

For the cannabis sector, reclassification offers tangible benefits. It could significantly reduce tax burdens under IRS code 280E. This rule currently prevents legal cannabis businesses from claiming standard deductions. The change would also remove major barriers to banking and attract mainstream lenders.Perhaps more importantly, it would open new doors for scientific study. Schedule I status has severely hampered comprehensive medical research on cannabis. Moving to Schedule III would facilitate much-needed clinical trials. Patients relying on medical marijuana could benefit from expanded research into its efficacy and safety.The industry has lobbied for this reform for years. While over 40 states allow medical use and nearly half permit adult recreational use, federal prohibition has created a complex and risky legal environment. This move would begin to align federal law with state-level trends.

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A final decision is pending, but momentum for federal marijuana reclassification is building. This potential policy shift promises to reshape the legal, financial, and medical landscape for cannabis in America, signaling a new era for the multi-billion dollar industry.

Thought you’d like to know

What does Schedule III reclassification mean for cannabis?

It would recognize cannabis as having accepted medical use and a lower abuse potential than Schedule I drugs. This eases research restrictions and reduces tax and banking hurdles for state-legal businesses, but does not make it federally legal for recreational use.

When could this reclassification happen?

No timeline is confirmed. The Washington Post reports no final decision exists. Any change would require a formal federal rulemaking process, which has been stalled since January, so implementation could take considerable time.

Who opposes moving cannabis to Schedule III?

Opponents argue the move downplays health risks, particularly for adolescents. Some law enforcement and drug prevention groups contend it could lead to increased use and public health harms, relying on what they call flawed reasoning from health officials.

How did cannabis stocks react to the news?

Shares surged on the speculation. Major companies like Tilray and Canopy Growth saw premarket gains of over 25%. Investors see reclassification as a path to profitability by easing crippling financial and operational constraints.

Does this make marijuana legal everywhere?

No. Reclassification is not legalization. It remains a controlled substance. State laws would still vary widely. However, it would significantly reduce the conflict between state and federal law, providing more security for legal state markets.