Cannabis stocks skyrocket after the US president says he is “seeing” the reclassification.
US President Donald Trump said his administration is “watching” marijuana as a less dangerous drug.
Speaking to a White House reporter on Monday, Trump said he will be determined about legal classification of drugs over the coming weeks.
“I hope that resolve is right,” Trump said. “It’s a very complicated subject.”
Trump said he had heard “great things” about medical cannabis, but he’d heard bad things about “everything else.”
“Some people like it, others don’t like it,” he said. “Some people hate the whole concept of marijuana because if it’s bad for a child, it’s bad for someone older than the child.”
Shares in cannabis-related companies have skyrocketed following Trump’s remarks.
The New York-based Tilray brand jumped nearly 42%, with Canadian village farms and Canopy Growth Party closing at around 34% and 26% respectively.
Trump made his comments last week after the Wall Street Journal reported to attendees at a recent fundraising dinner that he had told him he was interested in reclassifying drugs.
Although cannabis is completely legal, including recreational use, in 24 US states, use and possession of the drug is illegal at the federal level.
Cannabis is currently classified as a Schedule I drug and falls into the same category as heroin, LSD and ecstasy.
The Drug Enforcement Agency classification system defines Schedule I drugs as “without currently recognized medical use and are highly likely to be abused.”
Former President Joe Biden proposed reclassification of cannabis as a Schedule III drug defined as “moderate to low physical and psychological dependence,” but failed to enact any change before taking office in January.
