Pot stocks rally on report that Trump is “considering” weed reform
Pot stocks are rallying in premarket trading after The Wall Street Journal reported that President Trump is “considering” reclassifying marijuana as a less dangerous drug, a move that could take away some of the hurdles between ailing weed companies and profitability.
Canadian cannabis companies like Tilray, Cronos Group, Canopy Growth, and SNDL Inc., which do not currently sell in the US, shot up on the news. AdvisorShares Pure US Cannabis ETF, an ETF that tracks publicly traded US pot companies that can’t list on major exchanges, also rallied.
News and rumors (of which there have been several) regarding changes to the regulatory scheme for marijuana have been one of the largest catalysts for price movement in weed stocks, even those that don’t operate in the US. American cannabis operators struggle with limited access to banking, an unfriendly tax code, and high levels of debt without the benefit of bankruptcy protections.
Under former President Biden, the Department of Justice announced in April 2024 that it would recommend reclassifying marijuana. That process has lagged, and while some in the pot industry have cozied up to Republicans, it does not appear a particularly urgent political issue for either party or the current administration.
News and rumors (of which there have been several) regarding changes to the regulatory scheme for marijuana have been one of the largest catalysts for price movement in weed stocks, even those that don’t operate in the US. American cannabis operators struggle with limited access to banking, an unfriendly tax code, and high levels of debt without the benefit of bankruptcy protections.
Under former President Biden, the Department of Justice announced in April 2024 that it would recommend reclassifying marijuana. That process has lagged, and while some in the pot industry have cozied up to Republicans, it does not appear a particularly urgent political issue for either party or the current administration.
