Cannabis stocks soared 40% in one day! Trump's reclassification of cannabis danger levels ignites the market

Trump stated that he is considering reclassifying the danger level of cannabis, a statement that led to a significant rise in cannabis stocks on Monday. On Monday, Trump said at a press conference: We are considering reclassifying the danger level of cannabis, and we will make a decision in the coming weeks. This is a very complex topic. Previously, on Friday, it was reported that Trump is considering changing cannabis to a lower-risk drug classification. Reports indicated that Trump revealed this consideration earlier this month at a fundraising event at his golf club in New Jersey. Reclassification would allow cannabis companies to apply different tax regulations and encourage investment interest, among many other benefits. Tim Seymour, the investment director at Seymour Asset Management, stated, "Adjusting from a Schedule I controlled substance to a Schedule III controlled substance would be a game changer for this approximately $80 billion market." Cannabis-related stocks performed strongly on Monday. Canopy Growth surged over 26%, Tilray Brands skyrocketed more than 41%, and Cronos Group jumped over 14%, reaching a new 52-week high. Many stocks in this sector currently trade for less than $1 per share, meaning that just a few cents of movement can lead to significant percentage gains. Despite the surge on Monday, many stocks remain far below their historical highs. Impact of Regulatory Changes Under U.S. federal law, cannabis is currently classified as a Schedule I controlled substance, alongside cocaine. Previous discussions about reclassification have mainly focused on moving cannabis to a Schedule III controlled substance, which includes steroids and Tylenol with codeine. Reports indicate that Tilray CEO Irwin Simon expects the reclassification process to take about a year. Simon stated that Trump's public discussion of the matter and his plan to make a decision in the coming weeks has brought optimism to the industry. Simon said: Trump can get things done; if he didn't intend to accomplish something, he wouldn't be talking about it. Tim Seymour pointed out in a media program that the change in cannabis danger level classification seems to have bipartisan support. He also stated: If you really plan to invest in this field, now is much earlier than many institutional capitals. While Trump's support could improve the outlook, technically, he cannot unilaterally reclassify the drug. The U.S. Controlled Substances Act grants this power to the Attorney General, who has traditionally delegated it further to the head of the Drug Enforcement Administration