Trump eases status of cannabis in the US

U.S. President Donald Trump on Thursday signed an executive order to ease the federal classification of marijuana (cannabis), CNBC reported. Under the decision, cannabis will be removed from Schedule I — the strictest category of the Controlled Substances Act, which includes heroin and LSD — and reclassified to Schedule III, reserved for substances with recognized medical use and lower potential for abuse.

Speaking from the Oval Office, Trump said the move was long demanded by American patients suffering from severe pain, terminal illnesses, aggressive forms of cancer, seizure disorders and neurological conditions. He stressed that the decision is particularly important for military veterans with service-related injuries and for elderly Americans living with chronic medical conditions that significantly reduce quality of life.

The White House expects that in April the Centers for Medicare & Medicaid Services will launch a pilot program allowing certain Medicare beneficiaries to receive doctor-recommended cannabinoid-based products free of charge. According to senior administration officials, these products must comply with all federal, state and local regulations, come from legal sources, and undergo third-party testing for cannabinoid content and contaminants.

Cannabis-related stocks fell sharply following the announcement, likely due to concerns over increased competition, including from international companies. Shares of Trulieve dropped about 23%, Green Thumb Industries fell more than 16%, Tilray Brands declined roughly 4%, and the AdvisorShares Pure US Cannabis ETF lost nearly 27% by Thursday’s close.

Many analysts, however, view the reclassification as a financial lifeline for the cannabis industry. The move exempts companies from Section 280E of the U.S. tax code, allowing standard business expense deductions such as rent and wages, and opens access to banking services and institutional capital previously constrained by regulatory risks. At the same time, Trump emphasized that the executive order does not legalize marijuana for recreational use.

Reminder: Ukraine legalized medical cannabis in August 2024. According to estimates by the Patients of Ukraine charity foundation, between 2 and 6 million Ukrainians may need such medicines, particularly patients with chronic pain, cancer, post-traumatic stress and neurological disorders. Amid the ongoing war and high stress levels, demand for regulated cannabinoid-based treatments is growing, and experts expect the first registered medical cannabis products to appear in Ukrainian pharmacies between January and March 2026.

Tags: USA, hemp