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Major marijuana companies are seeing a surge in their stock prices today amid reports that President Donald Trump might soon issue an executive order altering the legal status of marijuana.
According to a plan from the Trump administration, initially reported by Axios, marijuana could be reclassified as a Schedule III drug, similar to commonly prescribed painkillers. Currently, it is categorized as a Schedule I drug, the same classification as cocaine and heroin.
As a result, shares of Canopy Growth (CGC) have soared by more than 20%, with Tilray Brands (TLRY) rising 15% and Aurora Cannabis (ABC) climbing approximately 10%. The AdvisorShares Pure US Cannabis exchange-traded fund (MSOS) has also seen a nearly 20% increase today.
This development follows years of underperformance in the marijuana stock market. During President Trump’s initial term, there was speculation that reclassification would occur, but it never materialized.
Reclassifying marijuana would represent one of the most significant shifts in federal drug policy in decades. It would also eliminate substantial obstacles for researchers studying the potential medical applications of marijuana.
This wouldn’t be the first move by the Trump administration to loosen the rules: In December, Trump signed an ​executive order directing the Department of Justice to begin preparing federal regulations for reclassification.
‘I don’t want it, okay,’ said Trump in December. ‘I’m not gonna be taking it. But a lot of people do want it. A lot of people need it.’
The move comes just days after Trump signed an executive order to ease access to psychedelic ‌drugs for medical research.
Joe Rogan and US Secretary of Health and Human Services Robert F. Kennedy Jr. look on as President Trump signs the executive order on April 18, 2026
Cannabis and related product have been legalized or decriminalized in 46 states, leaving only four states maintaining full prohibition
Cannabis stocks have been an abysmal investment for years, but today’s reports hold out hope for the long-neglected corner of the stock market – but investors must still proceed with caution.
Many of the highest-profile pot stocks are Canadian companies or got their start in Canada, which legalized recreational cannabis use nationwide in October 2018 – the first major nation to do so.
Take Tilray Brands – even among beaten-down marijuana stocks, this company has been an astonishing disappointment and a huge underperformer.
The company went public to great fanfare in mid 2018, part of a rush to market by a whole crop of new marijuana companies eager to cash in on Trump’s promises to loosen up laws governing cannabis.
But between its peak in September 2018 and mid 2025, shares of the company lost 99 percent of their value – only perking up again over recent months as the Trump administration again started talking up marijuana rescheduling.
Rescheduling would be a boon for stocks like Tilray, since federal prohibition has trumped state legalization efforts that have been under way for years.
That’s because companies that grow cannabis and sell marijuana products are still committing crimes under federal law, since they are trafficking in a schedule I drug.
While the Department of Justice had broadly left company alone due to state legalization, IRS tax law prohibits the companies from accessing common sources of financing or taking essential deductions and credits.
Reclassifying marijuana would be one of the ​most significant changes to federal drug policy in ​decades
Rep Steve Cohen (D-TN) advocates for federal cannabis legalization outside the capitol on April 20, 2026 in Washington, DCÂ
A downgrade to schedule III would eliminate the tax problems and give companies access to better financing and investing options.
‘The reclassification to schedule III will have a material impact on the valuation of cannabis stocks,’ wrote Matt Karnes, founder of cannabis industry financial analysis and research firm GreenWave Advisors.
Back in December, Trump’s executive order directed the Drug Enforcement Agency to undertake work to prepare for the rescheduling marijuana.
But according to analysts, there has been little progress on the issue since then, and even Trump has expressed frustrations over the delay.
‘Will you get the rescheduling done, please?’ Trump said Saturday, appearing to direct his comments toward White House officials.