Cannabis Stocks Jump As Trump Is Expected To Sign Marijuana Rescheduling Order At 1:30 PM ET

Cannabis stocks are surging Thursday morning amid reports that President Donald Trump is expected to sign an executive order addressing federal marijuana policy later today, potentially moving cannabis from Schedule I to Schedule III under the Controlled Substances Act.

According to multiple reports citing a White House official, Trump’s public schedule shows an executive order signing slated for 1:30 p.m. Eastern Time, with the order expected to focus on marijuana rescheduling. The White House has not yet released the text of the order, and officials have previously cautioned that no final decision has been confirmed until a formal announcement is made.

Markets React Ahead Of Expected Action

Investors moved quickly on the anticipation of regulatory change, sending cannabis-related stocks sharply higher in premarket and early trading. At the time of writing:

AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) traded up more than 3.1%
Tilray Brands (NADAQ: TLRY): up almost 13%
Canopy Growth (NASDAQ: CGC): up 18.5%
SNDL Inc (NASDAQ: SNDL): up 8.5%

Market participants appear to be positioning ahead of what could become the most significant federal shift in marijuana policy since the Controlled Substances Act was enacted in 1970.

What Rescheduling To Schedule III Would Mean

Moving cannabis to Schedule III would mark a formal federal acknowledgment that marijuana has accepted medical use, while keeping it regulated as a controlled substance. Schedule III drugs are considered to have a lower potential for abuse than Schedule I substances, which currently include heroin and other drugs deemed to have no accepted medical value.

Importantly, rescheduling would not legalize marijuana at the federal level. State-level cannabis programs would continue to operate under existing laws, and federal prohibition would remain in place outside the revised scheduling framework.

Why Investors Are Focused On Taxes And Research

One of the primary drivers of market optimism is the potential impact on federal taxation. If cannabis is moved to Schedule III, companies may no longer be subject to Internal Revenue Code Section 280E, which prevents businesses trafficking Schedule I or II substances from taking standard tax deductions.

Analysts have also pointed to expanded research opportunities as a key outcome, as rescheduling could ease long-standing barriers to clinical studies and drug development involving cannabis and its derivatives.

What This Would Not Change

Even if the executive order is signed as expected, several structural constraints would remain:

Cannabis would not be federally legalized
Banking and interstate commerce barriers would not automatically disappear
Workplace drug testing and safety-sensitive employment rules would remain largely unchanged absent further agency action

Awaiting Confirmation

A White House official said earlier this week that no final decision had been made and that reported details should be treated as speculative until officially announced. As of publication, the White House had not released the executive order text or formally confirmed its contents.

Markets, meanwhile, continue to react to the possibility that today’s action could reshape the regulatory and financial landscape for the cannabis industry.

IgniteIt will update this story once the executive order is signed and primary documentation becomes available.

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