President Donald Trump is easing some federal restrictions on marijuana.
Trump signed an executive order on Thursday that will reclassify marijuana to a Schedule III drug, putting it on par with drugs like ketamine and anabolic steroids.
“We have people begging for me to do this, people that are in great pain,” Trump said during an event in the Oval Office, flanked by several doctors.
The order falls short of fully legalizing marijuana, but it will make it easier for researchers to study the drug.
Trump said that he had been lobbied to make the change by people with extreme pain, incurable diseases, and seizure disorders, among others. The president noted the substance’s medical uses, including as a “substitute for addictive and potentially lethal opioid painkillers.”
The move could also bring tax relief to marijuana businesses operating in states that have already legalized the substance.
Marijuana is classified as a Schedule I drug, a category for substances with “no currently accepted medical use and a high potential for abuse,” according to the Drug Enforcement Agency.
Schedule III drugs, on the other hand, have a “moderate to low potential for physical and psychological dependence.”
Marijuana stocks surged last week amid widespread rumors of Trump’s impending order. Most of the sector’s most prominent names continued trending upward with this week on mounting speculation for the pro-cannabis policy decision.
News of Trump signing the executive order continued to boost the industry’s biggest players. Tilray Brands, typically seen as a leader among cannabis stocks, jumped 6% today while Aurora Cannabis rose 9% and Canopy Growth Corporation spiked 11%.
These cannabis stocks are all relatively small cap and are prone to price swings, but the signing of an executive order is a highly bullish catalyst for the industry.
As he campaigned for a third time in 2024, Trump signaled that he would take a friendlier approach toward marijuana than he did during his first term.
“I promised to be the president of common sense, and that is exactly what we’re doing,” Trump said on Thursday.
He said that he would vote for a ballot measure in Florida aimed at legalizing marijuana for recreational use in the state. That measure garnered 56% of the vote but ultimately fell short of the 60% required for passage.
Trump also said in 2024 that he supported enacting laws to make it easier for marijuana businesses to operate.