The days of Republicans’ hard stances against marijuana have seemingly gone up in smoke.
On Thursday, President Trump signed an executive order to reschedule marijuana as a Schedule III substance—an effective downgrade from Schedule I, the most dangerous classification, which includes substances like heroin. The change could allow for marijuana to be used in more medical research, and the order also authorized the creation of a pilot program to reimburse Medicare patients for CBD products.
The reclassification does not legalize marijuana, and seemingly completes or finalizes a recommendation made by the Biden administration in 2022 that the drug be rescheduled.
“The Attorney General shall take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner in accordance with Federal law,” the executive order reads.
Notably, Trump’s reclassification order was signed days after Trump ramped up his administration’s stance on another controlled substance, fentanyl. On Monday, he signed another executive order that called fentanyl “closer to a chemical weapon than a narcotic,” and designated it as “a weapon of mass destruction.”
Cannabis stocks actually ended Thursday in the red, despite the news. Tilray Brands, for example, was down 4.3% for the day, and Canopy Growth was down almost 12%.
Members of the cannabis industry are cautiously optimistic about what the executive order actually means, however.
“The Administration’s order calling to remove the cannabis plant from its Schedule I classification validates the experiences of tens of millions of Americans, as well as those of tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility,” said Paul Armentano, the Deputy Director at NORML, an organization that advocates for cannabis reform laws, in a statement. “This directive certainly marks a long overdue change in direction.”
Others are much more skeptical of what it means for the legal market, but do think the changes mark a boon for medical cannabis. “Cannabis is still federally illegal,” said Ryan Hunter, the chief revenue officer at Spherex, which creates vapes and cannabis-infused gummies, in comments shared with Fast Company. “The real win here is for medical cannabis,” he added. “At Schedule III, it’s much more practical for mainstream physicians to prescribe cannabis products.”
Still others are simply happy to see reclassification come to fruition. “We welcome the decision to reschedule cannabis. This long-overdue step aligns regulation with science and public opinion, providing a necessary foundation for patient relief and compliant business growth,” said Socrates Rosenfeld, the CEO and co-founder of Jane Technologies, which creates software for cannabis businesses, in a statement shared with Fast Company.
“We are hopeful this marks the beginning of real momentum toward the broader, systemic reform needed for a truly just and accessible industry.”