Overview
- After reports that President Trump could order marijuana moved to Schedule III, a White House spokesperson said Monday that no final decisions have been made.
- Cannabis shares that rallied on the speculation—such as Tilray and Canopy Growth—reversed course in afternoon trading as uncertainty persisted.
- Reclassification to Schedule III would not legalize marijuana federally but would acknowledge medical use and likely lift IRS Code 280E limits that block standard business deductions.
- Analysts and executives say potential benefits include lower tax burdens and improved access to banking and research, though formal federal processes would still be required.
- Industry figures warn a Schedule III move could trigger FDA and pharmaceutical-style compliance that favors large firms and creates new legal risks for current operators, while supporters highlight medical legitimacy and patient access.