US-listed cannabis stocks saw sharp premarket gains on Friday after fresh reporting pointed to a possible change in federal marijuana policy under President Donald Trump.
The development revived investor focus on regulatory risk, funding constraints, and the industry’s long-stalled growth prospects.
An article published by the Washington Post said Trump is expected to push the federal government to significantly loosen restrictions on marijuana.
The report triggered an immediate market reaction, with investors reassessing how a regulatory reset could reshape the economics of cannabis production, financing, and product development across the US market.
Tilray Brands jumped 28% in premarket trading, while SNDL, Canopy Growth, and the AdvisorShares Pure US Cannabis ETF recorded gains ranging from 13.5% to 32.5%.
The move reflected renewed expectations that regulatory pressure on the sector could ease after years of uncertainty and limited access to capital.
Policy shift drives market reaction
According to the report, Trump plans to direct federal agencies to reclassify marijuana as a Schedule III drug.
This would place cannabis in the same regulatory category as some prescription painkillers and other controlled medicines, rather than alongside drugs deemed to have no accepted medical use.
Such a change would reduce federal oversight of marijuana and its derivatives and could mark one of the most significant regulatory shifts for the sector in decades.
Reclassification would not fully legalise cannabis at the federal level, but it would alter how the drug is treated under US law, with direct implications for taxation, enforcement, and product approvals.
Trump’s administration has already been examining whether marijuana should be considered less dangerous under federal drug policy.
The reported move would formalise that approach and could ease criminal penalties tied to cannabis-related offences, while also reshaping how the industry operates.
Reclassification and drug oversight
A Schedule III designation would align cannabis with drugs that have recognised medical uses and a lower potential for abuse than Schedule I substances. This shift could allow regulators to treat cannabis products more like conventional prescription medicines.
Experts expect that such a framework would enable pharmaceutical companies to pursue regulatory approval for a wider range of cannabis-based products.
If approved, these products could be dispensed through traditional prescription channels, rather than remaining largely confined to state-level cannabis systems.
This potential pathway has long been seen as a missing link for the industry, which has struggled to integrate into the mainstream healthcare and pharmaceutical markets under current federal rules.
Funding barriers remain central
Despite the rally, structural challenges remain. Access to funding continues to be one of the biggest obstacles for cannabis producers operating in the US.
Federal restrictions have kept most banks and institutional investors on the sidelines, limiting traditional financing options.
As a result, many cannabis companies have relied on expensive loans or alternative lenders, raising borrowing costs and pressuring balance sheets.
A shift in federal drug classification could make it easier for companies to secure funding, lower financing costs, and attract a broader pool of investors.
Lower regulatory risk could also support longer-term investment in production, research, and distribution, areas that have been constrained by uncertainty over federal enforcement and compliance.
Industry implications widen
The reported policy direction has broader implications beyond equity prices.
Lower taxes, reduced compliance burdens, and improved access to capital could change competitive dynamics across the cannabis sector, particularly for US-focused operators that have been disproportionately affected by federal rules.
While details of timing and implementation remain unclear, the market response highlights how sensitive cannabis valuations remain to signals from Washington, especially under an administration willing to revisit long-standing drug policy classifications.
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