<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Rescheduling is a positive milestone for the marijuana industry.</li><li>It doesn't, however, legalize marijuana or mean that every pot stock will benefit from the news.</li><li>The big winners are multi-state operators, which will pay less in taxes.</li><li>10 stocks we like better than Tilray Brands ›</li></ul>For years, the Drug Enforcement Administration has classified marijuana as a Schedule I substance, alongside many harmful drugs, including heroin, ecstasy, and LSD. Recently, U.S. President Donald Trump has pushed for the rescheduling of marijuana, and last week, his administration eased the rules for licensed medical marijuana, moving it into a less harmful category of Schedule III. Recreational products haven't been rescheduled yet, but that could happen later this year.While this may be a positive development for the industry, it's important to know what this does and doesn't mean, as it won't necessarily affect all marijuana stocks equally. Here's what you need to know to avoid making a potentially costly mistake.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NzI5OS9hLXBlcnNvbi1zdGFuZGluZy1pbi1vZi1hLWNhbm5hYmlzLWdyZWVuaG91c2UuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="464" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NzI5OS9hLXBlcnNvbi1zdGFuZGluZy1pbi1vZi1hLWNhbm5hYmlzLWdyZWVuaG91c2UuanBnJnc9NzAw"/>Image source: Getty Images. <h2>Marijuana rescheduling will lower taxes for U.S. operators</h2>The most important takeaway from the rescheduling news is that the biggest winners from this will be U.S.-based pot stocks. Companies such as Curaleaf Holdings, Green Thumb Industries, and Trulieve Cannabis will see their tax bills decline. With medical marijuana now a Schedule III substance, section 280E of the tax code no longer applies to that area of their businesses, enabling them to claim more expenses, thereby reducing their taxes and boosting profitability.Equally important to note is that this will not provide much, if any, noticeable benefit for Canadian-based companies such as Tilray Brands (NASDAQ: TLRY), which don't sell marijuana products in the U.S. due to the ongoing federal ban. Until legalization happens, which is by no means inevitable due to rescheduling, the U.S. market remains largely off-limits for Tilray Brands and other Canadian producers. The mistake many investors make is in assuming that this will lead to legalization or somehow benefit Tilray Brands and all pot stocks as a whole, and that is simply not the case.<h2>Not all pot stocks will benefit from rescheduling</h2>When the excitement around rescheduling surfaced, shares of Tilray popped. On April 22, the stock jumped 14% by the day's close, only to end up falling afterwards after the official details came out. Speculation around legalization is largely what has given Tilray's stock a boost in recent years, as its own underlying results haven't been enough to convince investors that it's a good growth stock, or that it even has a realistic path to profitability.Year to date, Tilray's stock has declined by 27%. Unfortunately, without a growth catalyst or reason to be more bullish about its future prospects, the stock may continue to fall even further in the weeks and months ahead. Buying it and other pot stocks on news or rumors of marijuana reform can be risky without knowing the full details or what it might mean for a business. While marijuana reform may be positive for the industry as a whole, that doesn't mean every single pot stock will benefit.<h2>Should you buy stock in Tilray Brands right now?</h2> Before you buy stock in Tilray Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tilray Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 27, 2026. David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends Green Thumb Industries and Tilray Brands. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Marijuana rescheduling is a significant milestone for the industry, particularly benefiting U.S.-based multi-state operators like Curaleaf and Green Thumb, as it reduces their tax burdens. However, it does not legalize marijuana or guarantee benefits for all pot stocks, especially Canadian companies like Tilray Brands, which remain affected by federal bans. Investors should be cautious, as not all stocks will see gains from this news, and Tilray's stock has already declined significantly this year. The Motley Fool suggests exploring other investment options over Tilray.

Marijuana Rescheduling Has Arrived. Don't Make This Mistake