By Bill Peters and Victor Reklaitis
Tilray and Canopy Growth shares were among the big gainers Thursday
President Trump signed off on a move that could reschedule cannabis in the U.S.
President Donald Trump on Thursday signed an executive order asking the U.S. government to reschedule cannabis - a move that analysts and industry executives called the most significant federal reform on the substance in decades.
The executive order would direct the attorney general to hasten the process of rescheduling cannabis to a Schedule III drug - putting it in the same category as substances like Tylenol with codeine - from its Schedule I status alongside drugs like heroin and LSD.
&#34;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,&#34; Trump said during a White House event for the signing of the order.
Cannabis stocks were trading mixed on Thursday following the news, as investors likely moved to take profits following earlier speculation on Trump's executive order.
The AdvisorShares Pure U.S. Cannabis exchange-traded fund MSOS recently was down 13% on the day. Shares of Curaleaf Holdings (CURLF), a cannabis producer that operates in multiple U.S. states, slid 17%, while rival Trulieve Cannabis (CA:TRUL) fell 6.9%.
Among Canadian names, Tilray Brands (TLRY) gained 2.7% and shares of Canopy Growth (CGC) (CA:WEED) were up 3.3%.
Stocks in the sector had surged last week on preliminary news that Trump was working to reclassify marijuana. The stocks gained further on Tuesday, a day after Trump said he was &#34;very strongly&#34; weighing rescheduling.
Senior Trump administration officials told reporters on Thursday that Trump's primary goal with his rescheduling order is to boost research into medical marijuana and cannabidiol products so that patients and doctors are better informed. Cannabidiol, or CBD, is a compound found in the cannabis plant.
The president had heard from many people who talked up the potential benefits of medical marijuana and CBD use, according to the officials, who added that the administration's moves were not condoning the use of cannabis by adolescents or as a recreational drug. There was no specific timeline for rescheduling given in the order, but it's meant to be done as soon as possible, according to the officials.
During the 2024 White House race, Trump announced his support for a Florida ballot initiative, which ended up failing, that would have allowed for adult recreational use of cannabis in his home state, and he promised to focus on rescheduling the drug as president.
When asked on Thursday if Trump would push for full legalization of marijuana for recreational use, administration officials said they wouldn't speculate on what the president may be considering next.
-Bill Peters -Victor Reklaitis
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(END) Dow Jones Newswires
12-18-25 1453ET

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<p>President Trump signed an executive order to reschedule cannabis from Schedule I to Schedule III, aiming to boost medical research. Cannabis stocks traded mixed following the announcement, with some Canadian stocks gaining. The move is seen as a major federal reform, but does not condone recreational use. No timeline for rescheduling was provided.</p>

Cannabis stocks trade mixed as Trump signs executive order to reclassify the drug