The move by the Department of Justice to reclassify marijuana as a Schedule III drug has had an immediate impact on Wall Street and publicly traded cannabis companies. Shares of major companies such as Canopy Growth Corp., Aurora Cannabis, Green Thumb Industries, Trulieve Cannabis Corp, Tilray Brands, and Cronos Group all saw significant increases in their stock prices following the announcement. Canopy Growth Corp. saw its shares rise by over 11%, while Aurora Cannabis spiked nearly 7% to close at almost $8 per share. Green Thumb Industries, Trulieve Cannabis Corp, Tilray Brands, and Cronos Group also experienced positive gains in their stock prices on Thursday.
The proposed reclassification of marijuana as a Schedule III drug would allow the federal government to regulate medical marijuana, which is already legal in most states, and pave the way for further studies into its use. However, reclassification would not decriminalize marijuana. The move comes after over 50 years of marijuana being classified as a Schedule I drug, placing it in the same category as heroin, ecstasy, and LSD. The DEA has signaled its support for rescheduling marijuana to the third tier of drugs, which includes substances like Tylenol, codeine, and ketamine.
President Joe Biden has been pushing for the reclassification of marijuana as part of his policy agenda, and the move is seen as a major policy point for him ahead of the 2024 election. Most Americans support the legalization of marijuana for both medical and recreational purposes, with roughly three in five U.S. adults in favor, according to a recent Pew Research Center poll. However, critics of the reclassification argue that it could have negative side effects and make marijuana more accessible, potentially serving as a gateway drug to more harmful substances. Studies have cast doubt on these concerns, showing that marijuana is not a gateway drug in the way it is often portrayed.
The reclassification of marijuana is seen as a significant step towards expanding access to medical marijuana and conducting further research into its potential benefits. Companies in the cannabis industry are likely to see continued growth and opportunities as the federal government moves towards a more comprehensive regulatory framework for cannabis. The positive reaction from Wall Street and investors following the announcement of the proposed reclassification signals confidence in the future of the cannabis industry and the potential for increased acceptance and support for marijuana at the federal level. The move could also have broader implications for drug policy and public perception of marijuana in the United States.
