Cannabis Stocks Surge After Trump Signals Move to Schedule Three

U.S.-listed cannabis stocks rallied in premarket trading on Friday, Dec. 12, 2025, after The Washington Post reported President Donald Trump plans to direct federal agencies to reclassify marijuana from Schedule I to Schedule III. The Washington Post story, carried and summarized by Reuters and picked up by major financial outlets, triggered sharp intraday and premarket gains across major producers and a U.S. cannabis exchange traded fund as traders priced in easier federal oversight.

Tilray Brands led the moves, with multiple outlets reporting premarket gains around 28 to 29 percent before some intraday retracement. Other names moved in a broad band, with SNDL and Canopy Growth included among stocks rising roughly 13.5 to 32.5 percent in early trading, and the AdvisorShares Pure US Cannabis ETF also rebounding in that range. Yahoo Finance recorded a larger intraday spike for Tilray of about 42 percent before the stock pared those gains, a pattern reflected in several tickers as news flowed through markets.

Market commentary and analyst notes focused on the practical pathways reclassification could create for the sector. TD Cowen analyst Jaret Seiberg wrote that reclassification “would open the door for pharmaceutical companies to seek approval for more cannabis products, which could then be dispensed the same as other prescription drugs.” That prospect underpinned investor optimism that companies could pursue new pharmaceutical approvals, broaden distribution channels, and reach institutional investors who have largely avoided the sector because of federal scheduling.

Reports also emphasized long standing funding and banking constraints linked to Schedule I status. With marijuana currently categorized as having no accepted medical use and a high potential for abuse at the federal level, many banks and large institutional investors have remained on the sidelines, forcing producers to rely on higher cost financing or alternative lenders. Analysts and reporters noted that a move to Schedule III would likely reduce some regulatory frictions, potentially lowering capital costs and expanding access to traditional banking services, though the scale and timing of those effects would depend on subsequent administrative rules.

Coverage flagged broader legal and fiscal consequences, noting the administration’s reported aim to treat marijuana as a less dangerous substance, which could ease certain criminal penalties and affect taxation structures that have encumbered the industry. Journalists and market analysts described the immediate rally as reflecting a pronounced “Trump effect,” where the mere prospect of federal reclassification drove rapid repositioning by investors.

The Washington Post originated the report and Reuters, BNN Bloomberg and The Globe and Mail published near concurrent accounts noting the same market reaction. Where figures diverged, top tier wire coverage and several Canadian outlets consistently reported the similar premarket ranges. Any reclassification remains prospective and would be subject to formal agency processes before changes in enforcement, taxation, or approval pathways take effect, leaving the industry awaiting formal action and regulatory detail.