Cannabis stocks rise on reports Trump may reschedule marijuana

Reports that President Trump is weighing an executive order to reschedule cannabis from Schedule I to Schedule III — after discussions with industry executives, HHS Secretary Robert F. Kennedy Jr. and CMS head Mehmet Oz and a call with House Speaker Mike Johnson (who expressed skepticism) — sparked a sharp rally in cannabis names though the White House says no final decision has been made. Rescheduling would reclassify marijuana alongside drugs like ketamine and Tylenol with codeine, and is expected to loosen banking and regulatory constraints, allow ordinary business expense deductions that currently burden firms, and expand research and patient access. Market reaction was dramatic: AdvisorShares Pure US Cannabis ETF (MSOS) jumped ~36% and YOLO ~28%, while individual growers and retailers surged (Tilray +39%, Canopy +26%, SNDL +28%, Curaleaf +22%, Aurora +21%, Green Thumb +20%, Trulieve +17%, Cronos +15%).

Analysis

Reports that President Trump is weighing an executive order to reschedule cannabis from Schedule I to Schedule III triggered a sharp, immediate market reaction: MSOS jumped about 36%, YOLO ~28%, Tilray +39% and Canopy +26% among other large moves, while the White House said no final decision has been made and House Speaker Mike Johnson expressed skepticism during a discussed call. The move from Schedule I to Schedule III would reclassify cannabis alongside ketamine and Tylenol with codeine and is expected to materially ease banking access, reduce tax burdens by enabling ordinary business deductions, and expand medical research and patient access, according to industry lawyers cited in the report. The story is inherently political and speculative — sentiment and market impact scores provided (0.55 and 0.6) reflect moderately positive but tentative positioning — and the timing and legal mechanics remain unresolved, with key administration figures (HHS, CMS) involved but no formal action announced. Given the outsized intraday price moves, gains appear driven by rumor and positioning; the path to durable fundamental improvement depends on concrete policy steps, not preliminary discussions, and political opposition in Congress represents a meaningful tail risk.

Key Decisions for Investors

• Trim or take profits on short-term positions after the spike and lock in gains given the rally looks driven by rumors rather than confirmed policy changes
• Monitor for definitive signals — an official White House rescheduling order, HHS/CMS guidance, or legislative action — before adding fresh, larger positions
• If seeking exposure, prefer diversified ETF or basket exposure to reduce single-name execution risk and size new purchases modestly while maintaining hedges against policy reversal