By Trevor Hunnicutt and Steve Holland
WASHINGTON, Dec 18 (Reuters) – U.S. President Donald Trump on Thursday said he would sign an order recommending the loosening of federal regulations on marijuana, a move that could further reverse decades of tough-on-weed policy.
Trump’s order directs his attorney general to quickly move ahead with reclassifying marijuana, according to senior administration officials, a process that could lead to the psychoactive plant being listed alongside common painkillers, ketamine and testosterone as a less dangerous drug.
Such a decision would represent one of the most significant federal changes to marijuana policy in decades. It could reshape the cannabis industry, ease criminal penalties, unlock billions in research funding and lead to the opening of doors long closed to banks and investors. Marijuana will still remain illegal federally, and subject to a patchwork of local laws across the country.
“We have people begging for me to do this, people that are in great pain for decades,” Trump told reporters at the White House.
EASING DRUG REGULATIONS
The Drug Enforcement Administration has to review the recommendation to list marijuana as a Schedule III drug under the U.S. Controlled Substances Act and will decide on the reclassification. The text of Trump’s order is not yet public.
Senior administration officials said the primary purpose of the order was to increase medical research of marijuana and related products to understand their risks and potential for treatment. The Centers for Medicare and Medicaid Services plans to allow some beneficiaries to use hemp-derived CBD products.
Marijuana is the most widely used illicit drug in the world and the United States. Nearly one in five U.S. residents use it a year, according to the U.S. Centers for Disease Control and Prevention. Millions of Americans have been arrested for possession of the drug, even while growing businesses listed on stock exchanges sell cannabis-related products.
Under the U.S. Controlled Substances Act, marijuana is listed as a Schedule I substance like heroin, ecstasy and peyote. That classification indicates it has a high potential for abuse and no currently accepted medical use. Schedule III drugs are seen as less addictive and as carrying legitimate medical uses.
Even under a reclassification, marijuana would still be treated as a controlled substance on a federal level and its use subject to tight restrictions and criminal penalties.
CANNABIS STOCKS HAVE GAINED VALUE
Nonetheless, initial reports that Trump might loosen restrictions on the psychoactive drug sent stocks of cannabis-related companies higher. Funding remains one of the biggest challenges for cannabis producers, as federal restrictions keep most banks and institutional investors out of the sector, forcing pot producers to turn to costly loans or alternative lenders.
“Organigram Global views the potential reclassification of cannabis in the United States as a significant regulatory signal for the global cannabis industry,” said a spokesperson for that cannabis company. “This shift marks an important step toward greater regulatory clarity and institutional acceptance of cannabis worldwide.”
A patchwork of laws exists at the local level, from states where use and possession are fully legal to states where they are fully illegal. Since California first allowed medicinal use of marijuana in 1996, a 30-year trend has moved toward loosening regulation.
The issue is one that crisscrosses partisan lines. Most Americans tell pollsters they favor full legalization. During his 2021-2025 term in office, Democratic former President Joe Biden issued a blanket pardon for most federal marijuana possession charges and kickstarted the review of marijuana’s status. After that review, the Department of Health and Human Services recommended moving marijuana to Schedule III classification.
Trump has honed a reputation as a law-and-order Republican, bombing alleged drug traffickers in international waters and deploying military into cities to combat crime, efforts that have drawn legal scrutiny. But he has also bucked tradition to reward favored groups and individuals, including pardoning several who were convicted of federal violations related to drugs.
(Reporting by Trevor Hunnicutt; Additional reporting by Mariam E Sunny; Editing by Lisa Shumaker and Nick Zieminski)
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