The stock prices of major cannabis companies like Tilray Brands (NASDAQ:TLRY) and Canopy Growth (NASDAQ:CGC) skyrocketed 34.88% and 27.46%, respectively, in premarket trading on Friday, following reports of President Donald Trump‘s plans to relax federal regulations on marijuana.
Meanwhile, Aurora Cannabis Inc. (NASDAQ:ACB) surged 20%, Cronos Group Inc. (NASDAQ:CRON) gained 19% and Organigram Global Inc. (NASDAQ:OGI), and SNDL Inc. (NASDAQ:SNDL) rose 12% and 34.7% respectively.
Reclassification Of Cannabis In Focus
This surge was a direct result of the news that Trump is set to instruct federal agencies to reclassify marijuana as a Schedule III drug, according to a report by The Washington Post on Thursday.
Such a reclassification would result in cannabis companies being subjected to different tax regulations, potentially attracting more investments. This move would also place marijuana in the same category as drugs like steroids and Tylenol with codeine. Notably, Trump had previously hinted at this reclassification in August.
The shift would reassign marijuana from the category that includes heroin to a lower tier reserved for less dangerous substances. Axios reported that this change is expected to take place early next year.
The White House did not immediately respond to Benzinga‘s request for comment.
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Trump's Moves Stir Cannabis Markets
The recent surge in cannabis stocks is not the first time Trump has influenced the market. In September, Trump’s pro-CBD stance in a Truth Social post ignited a rally in cannabis stocks. Trump had shared a video on Truth Social promoting the health benefits of cannabis. The video, produced by The Commonwealth Project, argued that Medicare should cover CBD, calling it "the most important senior health initiative of the century."
However, in November, a last-minute deal by Congress re-criminalized certain THC products that were legalized as part of the Farm Bill in 2018. The conflict stems from the 2018 definition of hemp, which legalized cannabis containing under 0.3% delta-9 THC. But a 2025 Congressional summary notes that producers began making products that met the delta-9 limit yet exceeded 0.3% total THC, resulting in items that were still intoxicating.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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