Trump Poised To Greatly Ease Federal Marijuana Regulation
In a move seen as long overdue by many people on both sides of America's left-right political divide, President Trump is expected to use an executive order to dramatically reduce federal restrictions on marijuana. The order, which may come in the next few weeks, will direct federal agencies to move toward reclassifying marijuana as a "Schedule III" drug, which would put it on the same level as common prescription painkillers. The shift would carry implications for not only for patients, medical researchers and recreational users, but the many companies seeking to thrive in the evolving US cannabis market as well.
Marijuana has been a Schedule I drug since the 1970 passage of the Controlled Substances Act. Schedule I drugs are defined as those without any "currently accepted medical use" and "high potential for abuse," which means marijuana has spent 55 years being treated by the feds as if it were as medically useless and dangerous as heroin or meth. If marijuana moves to Schedule III, its new peers would be drugs like Tylenol with codeine, anabolic steroids and testosterone.
The Justice Department in 2024 recommended shifting cannabis to Schedule III, prompting a formal review by the Drug Enforcement Administration. However, progress has been stalled with legal challenges and agency delays, leaving the issue and industry in limbo. -- Bloomberg
Trump reportedly discussed the move in a Wednesday phone call with House Speaker Mike Johnson (R-LA), marijuana industry executives, Health Secretary Robert F. Kennedy Jr, and Centers for Medicare and Medicaid Services chief Mehmet Oz, according to the Post's sources.
Citing research and numbers, Johnson was said to have rattled off reasons not to ease regulations. Trump then let the cannabis executives counter Johnson's arguments. Observers say that, as Trump ended the call, he seemed convinced by the deregulation rationales and ready to move forward. Of course, as with foreign policy and other issues, Trump's always at risk of parroting the opinion of the last person to talk to him.
Advocates of legalization of the plant for use by cancer and other patients have long faced a Catch-22 objection from lawmakers who defend the status quo. Specifically, they deflect by saying they'd be more comfortable easing back on the war on pot if there were more research about its medical value. However, being a Schedule I drug makes it far more burdensome for university and other researchers to obtain and handle the plant, and to pursue that very research. Those varied burdens include advance approval from federal and state authorities -- itself a lengthy and complicated process -- heavy security for storage, and painstaking record-keeping to track every last milligram.
"People who have certain symptoms of cancer or side effects of cancer treatment might benefit from using cannabis," says the American Cancer Society. "It can improve quality of life and reduce the number of emergency room visits for things like dehydration due to nausea and vomiting, or uncontrolled severe pain." The plant is also used to address or alleviate many other conditions, from Lou Gehrig's disease to Crohn's disease, fibromyalgia, glaucoma, irritable bowel syndrome, Parkinson's, PTSD, spinal cord injuries, and traumatic brain injuries.
“This would be the biggest reform in federal cannabis policy since marijuana was made a Schedule I drug in the 1970s,” DC attorney Shane Pennington told the Washington Post on Thursday. Pennington is representing companies involved in litigation over marijuana's scheduling.
Trump has previously flirted with downshifting marijuana regulation."We're looking at reclassification and we'll make a determination over the next -- I would say over the next few weeks, and that determination hopefully will be the right one. It's [a] very complicated subject," Trump told reporters in August.
In September, marijuana stocks got high(er) after Trump's Truth Social account published an informational video highlighting the health benefits to seniors of cannabidiol (CBD), an active ingredient in cannabis derived from the hemp plant. The video began with bold text proclaiming, "You can revolutionize senior healthcare," and highlighted that CBD can "restore" the endocannabinoid system, touting benefits such as reduced pain, better sleep, and lower stress.
The same market response played out last night, with the AdvisorShares Pure US Cannabis ETF (MSOS) rocketing more than 38% higher at midnight ET.