Cannabis Stocks Surge as Trump Signs Order Easing Marijuana Restrictions
U.S. President Donald Trump has signed an executive order that significantly alters the landscape of marijuana regulation. This decision marks the most notable shift since 1970, as it aims to ease federal restrictions on cannabis.
Cannabis Regulation Reclassification
The executive order reclassifies cannabis as a less dangerous substance, shifting its status from Schedule I to Schedule III. This change does not legalize cannabis outright but improves the business climate for cannabis companies. It enhances access to capital, lowers taxes, and accelerates research and development opportunities.
Market Reactions
The announcement resulted in a notable surge in cannabis stocks. Key performances include:
- Tilray: Increased over 6%
- Aurora Cannabis: Rose nearly 9%
- SNDL: Gained 6%
- Canopy Growth: Soared almost 12%
Impacts on Investors
Tilray Brands CEO Irwin Simon expressed that without this reclassification, investor interest in cannabis stocks would remain low. The reclassification would align cannabis with substances like ketamine and testosterone, which carry a moderate-to-low risk of dependence.
Future Considerations
In addition to reclassification, President Trump is exploring a Medicare pilot program. This program may provide seniors with access to CBD products, potentially attracting further investments from financial institutions.
The implications of the new regulations could significantly shape the future of the cannabis industry, fostering an environment conducive to growth and expanded research initiatives.
