The Ministry of Justice will expedite the hearing on the reevaluation of marijuana. This measure is expected to boost the cannabis industry by easing taxes and facilitating access to financing. The previous classification equated marijuana with drugs like heroin. Marijuana is not yet fully legal in the United States. (Trump’s message on CBD in paragraphs 15 and 16). by Andrew Goudsward and Bhargav Acharya The US Department of Justice announced on Thursday that it would immediately relax restrictions on certain marijuana-based products and quickly work to reclassify the drug as less dangerous, marking one of the most significant changes in US drug policy in decades. This decision does not legalize marijuana across the entire US territory but is likely to reshape the $47 billion industry, which has faced persistent obstacles at the federal level, even though all but two states have legalized it in some form for medical use and nearly half have also legalized it for recreational use. Medical marijuana products regulated by the states would now move from a group of highly addictive drugs, such as heroin, to a less restrictive category of products with moderate abuse potential, including common painkillers, ketamine, and testosterone. Marijuana-based products approved by the US Food and Drug Administration would also be transferred to this category. Acting Attorney General Todd Blanche stated that the US government will also make a broader effort to reclassify all uses of the psychoactive plant as less dangerous. These measures are likely to reduce research barriers, ease tax burdens, and enable businesses to more easily obtain funding. “This reclassification measure allows for research on the safety and efficacy of this substance, ultimately benefiting patients with better care and providing doctors with more reliable information,” said Mr. Blanche in a statement. This decision follows a decree by President Donald Trump in December instructing the Department of Justice to ease restrictions related to marijuana. The move is expected to boost the growing cannabis industry in the US, benefiting companies such as Canopy Growth, Tilray Brands, Trulieve Cannabis. TRUL.CD In addition to the sale of medical marijuana and cannabis-based consumer products, some of these companies are also conducting research on the pharmaceutical uses of cannabis for pain management, cancer symptoms, anxiety, and other disorders. MARIJUANA STOCKS SURGE, THEN RETREAT ON GAINS Stocks of publicly traded cannabis companies in the US surged by 6% to 13% following the decision before retracting their gains as investors reacted to the limited scope of the immediate actions taken by the federal government. “Today marks a turning point for the United States. With President Trump’s action to reclassify cannabis, federal policy is finally aligning with science, medicine, and most importantly, patient needs,” said Irwin Simon, CEO of marijuana company Tilray Brands. TLRY.TO Marijuana as a Schedule I drug, meaning it has a high potential for abuse and no recognized medical use, has been widely criticized as outdated, especially as it makes breakthroughs at the state level. According to the Congressional Research Service, 24 states and the District of Columbia have legalized cannabis for recreational purposes, 40 have fully legalized it for medical purposes, and eight others allow certain medical uses. Only two states – Idaho and Kansas – do not allow any legal use. Legal sales are expected to reach $47 billion by 2026, according to market research firm BDSA. Following Trump’s decree in December, the Centers for Medicare and Medicaid Services began allowing certain eligible Medicare beneficiaries to use hemp-derived products, including CBD products, under clinician guidance. On Thursday, Trump stated that further action is needed. In a post on Truth Social, he called on Congress to update the law to ensure access to the “full range” of CBD products “while preserving Congress’s intent to restrict the sale of products that pose health risks.”
MARIJUANA IS THE MOST CONSUMED ILLICIT DRUG
Marijuana is the most consumed illicit drug in the United States and worldwide. According to the Centers for Disease Control and Prevention, nearly one in five Americans uses it in a year. Millions of Americans have been arrested for possession of this drug, even as publicly traded cultivation companies sell cannabis-related products. The Biden administration had initiated a similar move in 2024, but it was not finalized when Trump returned to power, and the Drug Enforcement Administration abandoned the initiative. The Department of Justice indicated that it would begin a process on June 29 to gather evidence and expert opinions on the reclassification of the drug. Marijuana skeptics argue that legalization would lead to increased drug use among minors, decreased workplace productivity, and increased risks to road safety. Dozens of Republican lawmakers opposed President Donald Trump’s December order to loosen regulations. Reactions were more subdued on Thursday, but Senator Tom Cotton, a Republican from Arkansas, said these measures would make it easier for Americans to consume what he described as a still dangerous drug. “Today, marijuana is much more potent than it was ten or twenty years ago, leading to an increase in psychoses, antisocial behavior, and fatal car accidents,” Cotton said in a social media post. “Changing marijuana’s classification as a drug is a step in the wrong direction.”
