US President Donald Trump is expected to sign an executive order on Thursday that would reclassify marijuana and ease federal restrictions, according to CNN, citing sources familiar with the planning and a senior White House official.
Officials cautioned that the timing could still change. NBC News, citing four people with direct knowledge of the matter, reported that the order could fast-track the reclassification process and may be signed as early as this week.
The White House has not yet responded to requests for comment.
Trump said earlier this week that he was considering the move, triggering a sharp rally in cannabis-related stocks. Shares of companies including Cronos Group, SNDL, Aurora Cannabis, Tilray Brands, Canopy Growth, Organigram Global, and Trulieve Cannabis surged following the reports.
Under the US Controlled Substances Act, marijuana currently sits in Schedule I, alongside drugs such as heroin and ecstasy. This classification defines substances with a high potential for abuse and no accepted medical use.
Pres. Trump is expected to sign an executive order as soon as Wednesday that will reclassify marijuana to a Schedule III drug, effectively easing federal restrictions on the drug, according to two senior administration officials familiar with the matter. https://t.co/uJl4Refw9M pic.twitter.com/40TwnL21xd
— ABC News (@ABC) December 17, 2025During the previous Biden administration, the Department of Health and Human Services (HHS) recommended moving marijuana to Schedule III. That category includes drugs such as codeine-based painkillers, ketamine, and testosterone.
The Drug Enforcement Administration (DEA) must review the recommendation and make a final decision. Reclassification could significantly reduce the industry’s tax burden and improve access to banking and investment. Several US states have already relaxed marijuana laws, allowing medical or recreational use despite federal restrictions.
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Cannabis Stocks Surge on Reclassification Reports
Cannabis stocks surged again on Friday, December 12, 2025, after the Washington Post reported that Trump plans to push for a dramatic loosening of federal marijuana rules.
US-listed shares of Tilray Brands jumped 35%, while SNDL, Canopy Growth, and the AdvisorShares Pure US Cannabis ETF gained between 20% and 31% in early trading.
According to CNBC, Trump could sign the executive order as soon as Monday, citing a source familiar with the plans. The reports underscore growing expectations that federal cannabis policy may soon shift after decades of strict regulation.
*Additional reporting from Reuters.
