President Trump is poised to deliver a massive victory for free market principles by reclassifying marijuana from Schedule I to Schedule III as early as Monday, dismantling nearly a century of federal overreach while unleashing economic opportunity.
Story Highlights
- Trump expected to sign executive order Monday reclassifying marijuana from Schedule I to Schedule III
- Cannabis stocks surge over 50% on news, with major companies seeing record gains
- Reclassification would reduce federal tax burdens and enable banking services for cannabis companies
- Move represents rollback of decades of failed government drug policies that ignored science
Trump Delivers on Campaign Promise with Executive Action
President Donald Trump is expected to sign an executive order as soon as Monday instructing federal agencies to reclassify marijuana from Schedule I to Schedule III, according to a person familiar with White House plans.
This decisive action fulfills Trump’s August 2025 campaign promise and represents a fundamental shift away from the federal government’s heavy-handed approach to drug policy. The reclassification would move marijuana out of the same category as heroin and into a tier with less dangerous substances like steroids and Tylenol with codeine.
Trump expected to sign executive order to reclassify marijuana as soon as Monday, source tells CNBC; pot stocks surge
/position+ $MSOS 🇺🇸🌿https://t.co/Bra5IC45rv pic.twitter.com/72wIorjOcd
— Todd Harrison (@todd_harrison) December 12, 2025
Market Responds with Record-Breaking Rally
Cannabis stocks experienced their best trading day on record Friday as news of Trump’s impending executive order spread through financial markets. Major cannabis producers Tilray Brands and Canopy Growth surged 44% and 52% respectively, while cannabis greenhouse operator Innovative Industrial Properties jumped nearly 9%.
The Amplify Seymour Cannabis ETF rallied an unprecedented 54%, demonstrating investor confidence in Trump’s business-friendly approach to regulatory reform that prioritizes economic growth over bureaucratic obstruction.
Economic Benefits Promise Relief from Government Overreach
The reclassification would immediately provide substantial economic benefits by allowing cannabis companies to operate under different tax regulations and encouraging much-needed investment in the sector.
Currently, federal restrictions prevent banks from serving cannabis businesses, forcing them to operate largely in cash and limiting their ability to access traditional financial services.
Ed Groshans of Compass Point noted the change would be “positive” for the cannabis industry, finally allowing banks to serve this legitimate business sector without fear of federal persecution.
Dismantling Failed Policies Rooted in Government Control
Industry experts view Trump’s action as the beginning of dismantling nearly a century of failed federal drug policies that have ignored scientific evidence while expanding government control.
Cannabis law firm partner Shawn Hauser called it “the beginning of a new era of public health policy” that would eliminate “outdated drug policies that fly in the face of science and medicine.”
This represents exactly the kind of common-sense governance conservatives have demanded, where policy follows facts rather than bureaucratic inertia and political correctness.
Long-Term Victory for Constitutional Principles
While industry advocates acknowledge reclassification represents only a “partial victory” toward full legalization, the momentum creates pressure for Congress to establish comprehensive regulatory frameworks addressing safety, access, and criminal justice reform.
The Drug Enforcement Administration is expected to finalize the reclassification rule by summer, with potential Supreme Court decisions on state versus federal cannabis regulations possibly accelerating timelines.
This measured approach respects both federal authority and states’ rights while reducing government interference in legitimate business activities that individual Americans should have the freedom to choose.
