19th December 2025 – (Washington) U.S. President Donald Trump on Thursday signed an executive order directing a swift loosening of federal marijuana regulations, instructing the attorney general to proceed with reclassifying the drug — a step that could unwind decades of stringent policy.
If enacted, cannabis would shift to Schedule III under the Controlled Substances Act, placing it alongside substances such as common painkillers, ketamine and testosterone, and recognising medical uses with lower abuse potential than Schedule I. While marijuana would remain illegal at the federal level and subject to a patchwork of state laws, the change would mark one of the most consequential federal revisions to cannabis policy in generations, with potential to reshape the industry, unlock billions in research funding and widen access to banking and investment.
Senate Democratic leader Chuck Schumer welcomed the move, but dozens of Republicans in Congress condemned it, warning in a letter that rescheduling “will send the wrong message to America’s children, enable drug cartels, and make our roads more dangerous.”
Trump said the primary aim is to expand medical research into the benefits and risks of cannabis and related products. “We have people begging for me to do this, people that are in great pain for decades,” he told reporters, while stressing he has no personal interest in using controlled substances. Administration officials said the Centres for Medicare and Medicaid Services plans to allow some beneficiaries to use hemp‑derived CBD products as early as April.
The Drug Enforcement Administration must review the rescheduling recommendation and render a final decision. Marijuana is currently a Schedule I substance — alongside heroin, ecstasy and peyote — defined as having high abuse potential and no accepted medical use. Schedule III drugs are deemed less addictive and have recognised medical applications. Even with rescheduling, cannabis would remain a controlled substance federally, with strict restrictions and criminal penalties still applicable.
Public use remains governed by a mosaic of state and local statutes, ranging from full legalisation to total prohibition. Since California legalised medical cannabis in 1996, the broader trajectory has been towards liberalisation. Marijuana is the world’s most commonly used illicit drug; nearly one in five US residents uses it annually, according to the Centres for Disease Control and Prevention. Greater acceptance may prompt prosecutors, police and courts to take a lighter approach to some offences.
Cannabis stocks initially rallied on the policy news but turned lower by Thursday’s close: US‑listed Tilray fell 4.2%, Aurora Cannabis 3.4%, SNDL nearly 1.5% and Canopy Growth about 12%, after intraday gains of 6% to 12%. Analysts cited disappointment that banking mandates were not included in the order. Funding remains a major hurdle as federal restrictions deter most banks and institutional investors, pushing operators towards costlier financing and sustaining a black market.
Industry voices called the shift a milestone. “This marks an important step toward greater regulatory clarity and institutional acceptance of cannabis worldwide,” an Organigram Global spokesperson said. Polls indicate most Americans favour full legalisation.
During his 2021–2025 term, former Democratic President Joe Biden issued mass pardons for federal marijuana possession and initiated a status review that led the Department of Health and Human Services to recommend Schedule III. Trump, known for a hard‑line law‑and‑order stance, has at times defied convention with targeted pardons, including for individuals convicted of federal drug offences.
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