Pot stocks keep blazing, after Trump says he's 'very strongly' looking at rescheduling cannabis

By Bill Peters Shares of Canadian producers Tilray and Canopy Growth put up double-digit gains Shares of Tilray jumped roughly 19% on Tuesday. Shares of U.S. and Canadian cannabis stocks continued their rally on Tuesday, after President Donald Trump a day earlier said he was "very strongly" weighing an executive order to reschedule the drug, a move that could lift some regulations on the substance. Curaleaf Holdings (CURLF) and Trulieve Cannabis (CA:TRUL), which produce cannabis in multiple U.S states, were up 8% and 6.4%, respectively. Canadian producer Tilray Brands (TLRY) jumped 19%, while Canopy Growth (CGC) moved 11.5% higher. Trump on Monday said he was considering reclassification because "a lot of people want to see it," adding that "it leads to tremendous amounts of research that can't be done unless you reclassify. So we are looking at that very strongly." CNN reported on Monday that the White House has been discussing recategorizing cannabis from Schedule I to a Schedule III substance, and said an announcement on a potential move could come this week. However, CNN said, no decision on the matter had been finalized. The Drug Enforcement Administration defines Schedule III drugs as those "with a moderate to low potential for physical and psychological dependence." The agency says their "abuse potential is less than Schedule I and Schedule II drugs." Examples of Schedule III drugs include ketamine, anabolic steroids, testosterone and products with under 90 milligrams of codeine per dose, like Tylenol with codeine. In August, Trump said his administration was "looking at reclassification" of cannabis. Last week, the Washington Post also reported that Trump would use an executive order to "ease access" to cannabis, and pot stocks jumped on the news. However, the Post noted that such a move would not legalize or decriminalize cannabis. Investors in cannabis stocks have long awaited the loosening of federal restrictions on cannabis, as more U.S. states legalize pot for recreational and medical use and as Canadian players seek a firmer pathway into a far bigger U.S. market. However, federal legislation in recent years to legalize or decriminalize the drug has stalled. After Canada legalized recreational cannabis use in 2018, licensed producers there overexpanded and lost money. In the absence of federal legalization, some cannabis growers in U.S. states where the drug is legal have had to retrench or otherwise rethink their ambitions for growth. -Bill Peters This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires 12-16-25 1206ET