Overview
- Trump said he is considering an executive order to direct agencies to shift marijuana from Schedule I to Schedule III, calling reclassification important for research.
- A White House spokesperson said no final decision has been made after reports suggested an order could come as soon as Monday.
- Cannabis stocks that surged late last week on policy speculation retreated Monday, with Tilray and Canopy Growth giving back gains as uncertainty grew.
- A move to Schedule III would not legalize marijuana federally but could remove IRS Section 280E limits on deductions, ease access to banking, and reduce some penalties.
- Legal experts note the president cannot unilaterally reclassify the drug, and industry and health advocates foresee trade-offs that include expanded research alongside new FDA and DEA compliance risks and youth-safety concerns.