Trump signs order to ease US marijuana regulations, sparking industry hopes

WASHINGTON – US President Donald Trump on Dec 18 signed an order directing the loosening of federal regulations on marijuana, a move that could further reverse decades of tough-on-weed policies.

His order instructs the Attorney-General to quickly move ahead with reclassifying marijuana. If that happens, the psychoactive plant would be listed alongside common painkillers, ketamine and ‍testosterone as a ​less dangerous drug.

Such a decision would represent one of the most significant federal changes to marijuana policy in decades. It could reshape the cannabis industry, unlock billions of dollars ‍in research funding, and open doors long closed to banks and investors.

Senate Democratic leader Chuck Schumer welcomed the move, while dozens of lawmakers in Mr Trump’s own Republican Party blasted the decision.

Some patients need access to the drug: Trump

Marijuana will still remain illegal federally and subject ​to a patchwork of local ​laws across the country, Mr Trump said. Some industry experts said congressional action was still needed to create more stable regulation.

“We have people begging for me to do this, people that are in great pain for decades,” he told reporters at the White House. But the teetotaller leader also said that controlled substances are risky and that experimentation was of no interest to him.

“I don’t want it, okay,” he said. “I’m not gonna be taking it. But a lot of people do want it. ‍A lot of people need it.”

Senior administration officials said the primary purpose of the order was to increase medical research into marijuana and related products to understand their risks and potential for treatment. The Centers for Medicare and Medicaid Services plans to ​allow some beneficiaries to use hemp-derived Cannabidiol, or CBD, products as soon as April.

Dozens of Republicans in the US House of ⁠Representatives and Senate wrote to Mr Trump on Dec 18, pleading with him not to sign the order.

“Reclassifying marijuana as a Schedule III drug will send the wrong message to America’s children, enable drug cartels and make our roads more dangerous,” they said.

Marijuana is the most widely used illicit drug in the world and in the US. Nearly one in five US residents use it each year, according to the US Centers for Disease Control and Prevention.

Millions of Americans have been arrested for possession of the drug, even while growing businesses listed on stock exchanges sell cannabis-related products.

Prosecutors, police and judges ​could take a lighter touch towards criminal prosecutions in response to growing acceptance.

Easing drug regulations

The Drug Enforcement Administration has to review the recommendation to list marijuana as a Schedule III drug under the US Controlled Substances Act and will decide on the reclassification. The issue has been bogged down in ‌bureaucratic processes at the agency.

Under the act, marijuana is listed as a Schedule I substance such as heroin, ecstasy and ​peyote. That classification indicates it has a high potential for abuse and no currently accepted medical use. Schedule III drugs are seen as less addictive and as carrying legitimate medical uses.

Even under a reclassification, marijuana would still be treated as a controlled substance on a federal level and its use subject to tight restrictions and criminal penalties.

A patchwork of laws exists at the local level, from states where use and possession are fully legal to states where they are fully illegal. Since California first allowed medicinal use of marijuana in 1996, a nearly 30-year trend has moved towards loosening regulation.

Cannabis stocks gained value

Stocks of cannabis-related companies gained on the news from Washington but fell between 3 per cent and 12 per cent as at Dec 18.

US-listed shares of Tilray dropped 4.2 per cent, Aurora Cannabis fell 3.4 per cent, SNDL slipped nearly 1.5 per cent and Canopy Growth sank about 12 per cent by the close. The stocks had earlier gained between 6 per cent and 12 per cent in afternoon trading before reversing course.

At least two analysts said expectations that a mandate for cannabis banking would be included in the order, and then was not, could have ‍caused some disappointment among investors.

Funding remains one of the biggest challenges for cannabis producers, as federal restrictions keep most banks and institutional investors out of the sector, forcing pot producers to turn to costly loans or alternative lenders. A ​black market also thrives because of the high costs of doing business.

“This shift marks an important step towards greater regulatory clarity and institutional acceptance of cannabis worldwide,” said a spokesperson for Organigram Global, a cannabis company.

Most Americans tell pollsters they favour full legalisation.

During Democratic former ​president Joe Biden term in office from 2021 to 2025, he issued a blanket pardon for most federal marijuana possession charges and kick-started the review of marijuana’s status. After that review, the Department of Health and Human Services recommended ‌moving marijuana to Schedule III classification.

Mr Trump has honed a reputation as a law-and-order Republican, including bombing alleged drug traffickers in international waters and deploying military into cities to combat crime, efforts that have drawn legal scrutiny. But he has also bucked tradition to reward favoured groups and individuals, including pardoning several who were convicted of federal violations related to drugs. REUTERS