Thu Dec 18 18:40:00 UTC 2025: Trump Reclassifies Marijuana, Marking Historic Shift in U.S. Cannabis Policy

Washington, D.C. – In a landmark move, President Donald Trump signed an executive order Thursday directing federal agencies to reclassify marijuana, significantly easing long-standing restrictions on the drug. The order, once finalized by the Drug Enforcement Administration (DEA), will move cannabis from Schedule I, the most restrictive category under the Controlled Substances Act, to Schedule III. This new classification includes substances with accepted medical uses and a lower potential for abuse, such as ketamine and Tylenol with codeine.

“This action has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems and more, including numerous veterans with service related injuries, and older Americans who live with chronic medical problems that severely degrade their quality of life,” Trump stated during the signing in the Oval Office.

In a related development, the Centers for Medicare and Medicaid Services, led by Dr. Mehmet Oz, is slated to launch a pilot program in April. This initiative will allow certain Medicare-covered seniors to receive free, doctor-recommended CBD products. These products must comply with all local and state laws regarding quality and safety, originate from legally compliant sources, and undergo third-party testing for CBD levels and contaminants.

The reclassification is anticipated to provide a major financial boost to the cannabis industry by exempting companies from IRS Code Section 280E, enabling them to deduct standard business expenses. It’s also expected to unlock banking access and institutional capital previously hindered by compliance concerns.

However, the announcement triggered mixed reactions in the stock market. Tilray Brands saw a rise of about 6%, while Trulieve and Green Thumb Industries experienced declines of roughly 15% and 5%, respectively. The AdvisorShares Pure US Cannabis ETF, tracking American operators, fell by over 10%.

“Millions of registered patients across the United States, many of them veterans, rely on cannabis for relief from chronic and debilitating symptoms. We commend the administration for taking this historic step. This is only the beginning,” said Ben Kovler, CEO and founder of Green Thumb, in a statement to CNBC.

Despite the changes, President Trump emphasized, “I want to emphasize that the order … doesn’t legalize marijuana in any way, shape or form, and in no way sanctions its use as a recreational drug.”

While CBD has gained popularity in recent years, the FDA has remained cautious, citing inconsistent benefits for targeted conditions and potential risks like liver toxicity and interference with other medications. Currently, the FDA has only approved one CBD-based drug, Epidiolex, for rare forms of epilepsy. Experts suggest that the reclassification could facilitate further research into the effects of CBD use.

Read More