Leading marijuana company stocks are experiencing a significant surge today following reports that President Donald Trump might soon sign an executive order altering the legal status of cannabis. According to a report by Axios, the Trump administration plans to reclassify marijuana as a Schedule III drug, similar to common prescription painkillers. Currently, it is designated as a Schedule I drug, the same classification as cocaine and heroin. Canopy Growth (CGC) shares have risen by over 20 percent, Tilray Brands (TLRY) by 15 percent, and Aurora Cannabis (ABC) by approximately 10 percent. Meanwhile, the AdvisorShares Pure US Cannabis ETF (MSOS) has seen nearly a 20 percent increase today.

This development follows years of underperformance for marijuana stocks, which saw a significant moment during Trump’s first term when investors anticipated rescheduling that ultimately did not materialize. Changing marijuana’s classification would mark one of the most substantial shifts in federal drug policy in decades, eliminating major obstacles for researchers exploring the legitimate medical uses of cannabis. This would not be Trump’s first initiative to relax drug rules; in December, he signed an executive order instructing the Department of Justice to begin drafting federal regulations for reclassification.

In December, Trump commented, “I don’t want it, okay. I’m not gonna be taking it. But a lot of people do want it. A lot of people need it.” This move follows closely after Trump signed an executive order to facilitate medical research access to psychedelic drugs. While cannabis stocks have been poor investments for years, today’s news provides hope for this oft-overlooked market segment. However, investors should still remain cautious. Many prominent marijuana stocks are tied to Canadian companies, or originated in Canada, which made recreational cannabis legal nationwide in October 2018, becoming the first major country to do so.

Take Tilray Brands – even among beaten-down marijuana stocks, this company has been an astonishing disappointment and a huge underperformer. The company went public to great fanfare in mid 2018, part of a rush to market by a whole crop of new marijuana companies eager to cash in on Trump’s promises to loosen up laws governing cannabis. But between its peak in September 2018 and mid 2025, shares of the company lost 99 percent of their value – only perking up again over recent months as the Trump administration again started talking up marijuana rescheduling. Rescheduling would be a boon for stocks like Tilray , since federal prohibition has trumped state legalization efforts that have been under way for years. That’s because companies that grow cannabis and sell marijuana products are still committing crimes under federal law, since they are trafficking in a schedule I drug.

While the Department of Justice had broadly left company alone due to state legalization, IRS tax law prohibits the companies from accessing common sources of financing or taking essential deductions and credits. A downgrade to schedule III would eliminate the tax problems and give companies access to better financing and investing options. ‘The reclassification to schedule III will have a material impact on the valuation of cannabis stocks,’ wrote Matt Karnes, founder of cannabis industry financial analysis and research firm GreenWave Advisors. Back in December, Trump’s executive order directed the Drug Enforcement Agency to undertake work to prepare for the rescheduling marijuana. But according to analysts, there has been little progress on the issue since then, and even Trump has expressed frustrations over the delay. ‘Will you get the rescheduling done, please?’ Trump said Saturday, appearing to direct his comments toward White House officials. Pictured: Rep Steve Cohen (D-TN) advocates for federal cannabis legalization outside the capitol on April 20, 2026 in Washington, DC.