• Trump is considering an executive order to reclassify marijuana to Schedule III.
• This change could reshape the cannabis industry and increase research funding.
• Reclassification may ease some criminal penalties related to marijuana.
• Mixed reactions arise from political figures regarding the proposed move.
• Legislation efforts to reclassify marijuana commenced during the Biden administration.

President Trump recently stated he is "considering" an executive order to reclassify marijuana as a less dangerous drug, projecting significant implications for the cannabis industry. This decision could facilitate increased research funding and ease criminal penalties associated with marijuana use. Trump emphasized the need for reclassification, stating it would enable “tremendous amounts of research that can’t be done unless you reclassify,” which he mentioned in a meeting in the Oval Office. This move would shift marijuana from its current status as a Schedule I substance to a Schedule III classification, akin to drugs like ketamine and testosterone, offering potential financial relief and access to banking for cannabis businesses, according to The Hill and Reuters.

The proposal to reclassify marijuana is not without its criticisms. Republican Rep. Mike Lawler of New York argues that changing its classification would be poorly advised, calling marijuana a "gateway drug" that leads to more severe substance abuse issues. Lawler stressed the growing concentration of THC in marijuana, which has risen significantly over the years, from about 5 percent in the 1990s to between 15-20 percent currently. He contended that rescheduling marijuana could exacerbate ongoing challenges related to substance use disorders, as reported by The Hill.

Efforts to reclassify marijuana were initiated by the Biden administration, which recommended moving its classification. However, these efforts remain incomplete. The Drug Enforcement Administration (DEA) has yet to finalize decisions regarding marijuana's status. With the ongoing discourse on marijuana policies, the cannabis stocks have reacted positively to the notion of reclassification, reflecting optimism in the industry regarding potential regulatory changes, noted by Reuters and South China Morning Post.