{"id":1701,"date":"2025-08-11T16:42:39","date_gmt":"2025-08-11T16:42:39","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/08\/11\/cannabis-stocks-soar-on-trump-reclassification-speculation\/"},"modified":"2025-08-11T16:42:39","modified_gmt":"2025-08-11T16:42:39","slug":"cannabis-stocks-soar-on-trump-reclassification-speculation","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/08\/11\/cannabis-stocks-soar-on-trump-reclassification-speculation\/","title":{"rendered":"Cannabis stocks soar on Trump reclassification speculation"},"content":{"rendered":"
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Following a Wall Street Journal report<\/a>, cannabis stocks surged Monday due to speculation that US President Donald Trump is considering reclassifying marijuana to a lower danger level.<\/p>\n

Canopy Growth and Tilray Brands both saw surges of over 12% on Monday. <\/p>\n

Cronos Group climbed more than 5%, reaching a new 52-week high in early trading, according to a CNBC report<\/a>. <\/p>\n

Similarly, the AdvisorShares Pure US Cannabis ETF (MSOS) and Amplify Alternative Harvest ETF (MJ) each experienced gains exceeding 10%.<\/p>\n

Low price point<\/h2>\n

Many cannabis stocks in the sector trade at remarkably low prices, often less than a dollar per share. <\/p>\n

This low price point means that even small fluctuations of a few cents can translate into substantial percentage changes in stock value, making these stocks highly volatile. <\/p>\n

Despite a recent rally, which saw some positive movement on Monday, the majority of these cannabis stocks remain far below their historical all-time highs. <\/p>\n

Investors in this sector are currently navigating a high-risk landscape, where the potential for significant gains is accompanied by an equally high risk of further declines. <\/p>\n

The future trajectory of these stocks will largely depend on evolving regulatory frameworks, improved market demand, and the ability of individual companies to execute sustainable business models.<\/p>\n

Earlier this month, Trump discussed the issue at a fundraiser held at his New Jersey golf club, according to attendees.<\/p>\n

Federal change<\/h2>\n

Under US federal law, the classification of cannabis as a Schedule I drug places it in the most restrictive category, signifying a high potential for abuse and no accepted medical use. <\/p>\n

This categorisation, which includes substances like heroin and cocaine, has significant implications for research, medical applications, and legal enforcement. <\/p>\n

Historically, discussions regarding the reclassification of cannabis have often revolved around moving it to Schedule III. <\/p>\n

This less restrictive category includes drugs with a moderate to low potential for physical and psychological dependence, such as anabolic steroids and certain pain medications like Tylenol with codeine. <\/p>\n

Such a reclassification would acknowledge potential medical benefits and facilitate further research into its therapeutic applications, while still maintaining some federal control. <\/p>\n

The ongoing debate highlights a significant divergence between federal law and the increasing number of states that have legalized cannabis for medical or recreational use, creating a complex legal and regulatory landscape.<\/p>\n

Reclassification benefits<\/h2>\n

Reclassifying marijuana companies would bring about various advantages, including different tax regulations and increased investment appeal.<\/p>\n

Tim Seymour, investing chief at Seymour Asset Management, was quoted in the CNBC report on Monday, stating that a shift from Schedule 1 to Schedule 3 could “change the game” for the approximately $80 billion market. <\/p>\n

He also observed that this change appears to have bipartisan backing.<\/p>\n

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It does not mean that it won\u2019t be a complicated trade,\u201d Seymour said. \u201cBut it does mean that you\u2019re investing now well ahead of a lot of institutional capital if you are, in fact, investing into this sector.<\/p>\n<\/blockquote>\n

While Trump’s support can improve the prospects for reclassifying the drug, he lacks the unilateral authority to do so. <\/p>\n

The power to reclassify substances under the Controlled Substances Act rests with the Attorney General, who has historically delegated this authority to the administrator of the Drug Enforcement Administration.<\/p>\n

The post Cannabis stocks soar on Trump reclassification speculation<\/a> appeared first on Invezz<\/a><\/p>\n

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Following a Wall Street Journal report, cannabis stocks surged Monday due to speculation that US President Donald Trump is considering reclassifying marijuana to a lower danger level.Canopy Growth and Tilray Brands both saw surges of over 12% on Monday. Cronos Group climbed more than 5%, reaching a new 52-week high in early trading, according to a…<\/p>\n","protected":false},"author":1,"featured_media":1702,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1701","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1701"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1701\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1702"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}