In one of the largest changes to U.S. drug policy in decades, the U.S. Department of Justice announced on Thursday that it will swiftly reschedule marijuana as less hazardous and immediately relax prohibitions on some marijuana products.
Although all but two U.S. states have legalized marijuana in some form for medical use and nearly half have legalized it for recreational use, the move is likely to change the $47 billion industry, which has faced ongoing federal barriers.
State-regulated medical marijuana products would now fall into a less restrictive category for substances with a low to moderate potential for addiction, such as common painkillers, ketamine, and testosterone, rather than a group of medications categorized as highly addictive, like heroin.
Cannabis products that have been approved by the US Food and Drug Administration would also fall under that category.
The U.S. government would expedite a larger initiative to categorize all applications of the psychoactive plant as less hazardous, according to Acting Attorney General Todd Blanche.
The actions are expected to reduce obstacles to research, lessen tax obligations, and facilitate capital acquisition for businesses.
Blanche stated that “this rescheduling action permits research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
The action comes after President Donald Trump issued an executive order in December instructing the Justice Department to relax marijuana laws.
Companies including Canopy Growth, Tilray Brands, and Trulieve Cannabis stand to gain from the legislation, which is anticipated to support the expanding cannabis sector in the US.
Some of these businesses are not only providing consumer-focused items and medicinal marijuana, but they are also investigating the pharmaceutical applications of cannabis for treating pain, anxiety, cancer symptoms, and other conditions.
POT SHARES WENT UP AND DOWN
Following the ruling, U.S.-listed shares of cannabis firms surged between 6% and 13%, but their gains were ultimately reversed as investors reacted to the narrow scope of the federal government’s immediate actions.
“The United States is at a critical juncture now.” Federal policy is finally in line with science, medicine, and most importantly, patient needs, with President Trump’s action to reschedule cannabis,” stated Irwin Simon, CEO of the cannabis company Tilray Brands.
Marijuana’s position as a Schedule I narcotic, meaning it has a high potential for misuse and no approved medicinal value, has been widely challenged as antiquated, particularly as it makes advances at the state level.
According to the Congressional Research Service, about 24 states and the District of Columbia have legalized it for recreational reasons, 40 have fully legalized it for medical purposes, and eight more permit some medical usage.
The only two states that forbid any lawful use are Kansas and Idaho.
Market research firm BDSA predicts that legal sales will surpass $47 billion in 2026.
The Centers for Medicare and Medicaid Services started permitting some qualified Medicare beneficiaries to use hemp-derived products, including cannabidiol (CBD) products, under clinical supervision following Trump’s December order.
Trump said more needs to be done on Thursday. He urged Congress to amend the legislation to provide access to the “full spectrum” of CBD products while preserving Congress’s intent to restrict the sale of products that pose health risks, in a Truth Social post.
The most commonly used illegal substance is marijuana.
In the US and around the world, marijuana is the most commonly used illegal substance.
The U.S. Centers for Disease Control and Prevention reports that nearly one in five Americans uses it annually.
While expanding companies listed on stock exchanges offer cannabis-related goods, millions of Americans have been jailed for drug possession.
A similar initiative was started by the Biden administration in 2024, but it was abandoned by the U.S. Drug Enforcement Administration when Trump took office again.
On June 29, the Justice Department announced that it will start the process of gathering information and professional advice for the drug’s reclassification.
Legalization of marijuana, according to its detractors, would increase drug use among minors, reduce productivity at work, and increase road safety risks.
When President Donald Trump instructed the Justice Department to relax regulations in December, dozens of Republicans in Congress complained.
Senator Tom Cotton, a Republican from Arkansas, said the actions would make it easier for Americans to use what he described as a still-dangerous drug, but the response was more subdued on Thursday.
In a social media post, Cotton stated, “Marijuana is far more potent now than it was ten or twenty years ago, leading to increased psychosis, anti-social behavior, and fatal car crashes.”
“A change to marijuana’s drug classification is a step in the wrong direction.”
