President Donald Trump’s executive order to reclassify cannabis as a Schedule III drug has sparked mixed reactions in the sector, as stock prices shift.
What the Order Means
The order would speed up the DEA’s process to move cannabis from Schedule I-alongside heroin and LSD-to Schedule III, similar to ketamine and certain anabolic steroids.
Stock Market Impact
- Tilray Brands fell 4.2% to $12.33 after the order; the price is below its $17 IPO level in 2008, though it gained more than 50% in December.
- Canopy Growth, listed on the Toronto Stock Exchange, dropped 12.5% but was up over 40% in December.
- Curaleaf Holdings fell 32% on Thursday but remains up over 30% for December.
- Roundhill Investments’ cannabis ETF fell 26.8% on Thursday, yet is up more than 40% for December.
Potential Industry Benefits
Reclassification could lower tax burdens for marijuana businesses and ease research, such as clinical studies. It may also open access to banks, investments, and loans, which have been limited by strict federal regulations.
Key Takeaways
- The order moves cannabis to Schedule III, potentially softening federal restrictions.
- Major cannabis stocks saw December gains but declined today.
- Easier banking and research could boost industry growth.
The executive order marks a significant step for the cannabis sector, though it does not legalize recreational use under federal law.
