President Donald Trump signed an executive order on Thursday directing his administration to pursue reclassifying marijuana as a Schedule III drug under federal law, loosening restrictions compared with its current Schedule I status. The White House framed the move as a way to make research easier and expand access to cannabis-based medical treatments, including for pain and seizure disorders. For businesses, rescheduling could reduce a key federal tax burden for state-legal marijuana operators even though the order stops short of nationwide legalization. Markets reacted quickly: some cannabis stocks swung sharply as investors weighed the practical benefits of rescheduling against the absence of full legalization.

Highlights:

• Drug schedule shift: Schedule III status would place marijuana in the same federal category as drugs such as ketamine and anabolic steroids, rather than alongside Schedule I substances like heroin and LSD.
• Research pathway: The administration and several outlets emphasized that Schedule I classification has made cannabis studies harder to conduct, and the new direction is intended to lower barriers for scientific and medical research.
• Tax knock-on: Because federal tax rules have penalized businesses trafficking in Schedule I/II substances, the shift to Schedule III is expected to bring meaningful tax relief for many state-licensed marijuana companies.
• Stock volatility: Sector shares jumped on speculation ahead of the signing, then some names sold off after details confirmed rescheduling but not legalization, underscoring how sentiment-driven the group can be.
• Patient access angle: CNBC reported the order could open the door to broader access for cannabis products, including policy discussions that touch health coverage and consumer CBD markets.

We have people begging for me to do this, people that are in great pain, - President Donald Trump

Perspectives:

• President Trump and White House allies: They presented rescheduling as a patient-focused step that could support medical use (including pain relief) and reduce reliance on opioid painkillers, while enabling more research. (Business Insider)
• Analysts and industry executives: They described the rescheduling push as the most significant federal reform in decades, but also signaled that the lack of full legalization still leaves major commercial constraints in place. (MarketWatch)
• Investors in cannabis equities: Trading reflected mixed expectations: some investors bought on anticipated policy tailwinds, while others sold after the announcement because it did not legalize marijuana nationwide. (Financial Times)

Sources:

• Trump signs executive order easing federal restrictions on marijuana - businessinsider.com
• Trump signs executive order reclassifying cannabis, opening door to broader weed access - cnbc.com
• What to know about Trump's order seeking to relax federal drug policies for marijuana - abcnews.go.com
• Trump signs executive order that could reclassify marijuana as a less dangerous drug - seattletimes.com
• Marijuana stocks tumble as Trump reclassifies drug but fails to legalise it - ft.com
• Marijuana stocks sell off as Trump signs executive order to reclassify cannabis - marketwatch.com