Cannabis Stocks And ETFs Surge As DEA Moves To Reschedule Marijuana
DEA's Decision on Cannabis Rescheduling:
- The DEA aligns with the HHS recommendation to move marijuana from Schedule I to Schedule III under the Controlled Substances Act.
- Documents confirm cannabis has medical use and lower abuse potential compared to drugs in Schedules I and II.
Investor Optimism in Cannabis Industry:
- Investors are optimistic about potential regulatory changes benefiting the cannabis sector.
Top US and Canadian Cannabis Stocks:
- Various cannabis stocks like Curaleaf Holdings, Green Thumb Industries, and Canopy Growth Corporation are trading significantly higher.
Best-Performing Cannabis ETFs:
- ETFs such as AdvisorShares Pure US Cannabis ETF and Amplify Alternative Harvest ETF are trading notably higher.
Upcoming Cannabis Capital Conference:
- Benzinga is hosting a Cannabis Capital Conference in October in Chicago for industry insights and networking opportunities.
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Last Week's Six Best-Performing ETF Sectors
Market Performance: Last week, the S&P 500 fell by 0.6%, while the Dow Jones rose by 1.1% and the Nasdaq dropped by 1.6%, primarily due to declines in tech stocks, including a 14% drop in Oracle's shares.
Federal Reserve Actions: The Fed implemented its final rate cut of the year, lowering the benchmark federal funds rate to 3.5%-3.75%, with projections indicating a more restrained outlook for 2026.
ETF Highlights: Notable ETF performances included significant gains in the cannabis sector, with the Roundhill Cannabis ETF up 51.2%, and strong performances in silver miners and the space economy, driven by rising demand and investor interest.
Emerging Trends: The Roundhill GLP-1 & Weight Loss ETF gained 6.3%, reflecting optimism in weight loss drugs as a major advancement in pharmaceuticals, while platinum prices surged due to anticipated market deficits.
Trump indicates he is 'seriously' contemplating reclassifying marijuana through an executive order.
Market Reaction to Trump's Comments: Despite President Trump's indication of considering an executive order to reclassify marijuana, pot stocks, including the Amplify Seymour Cannabis ETF, experienced a decline, with the ETF down nearly 7% after a significant surge on Friday.
Potential Reclassification Impact: Trump suggested that reclassifying marijuana from a Schedule I to a Schedule III substance could facilitate more research and attract investment, with industry insiders expressing increased optimism about the potential for this change.
Historical Context: The discussion around marijuana reclassification is not new, as Trump had previously mentioned the possibility in August, and the recent comments have reignited hopes for a shift that could benefit the cannabis industry.
Stock Performance of Major Producers: Major cannabis producers like Tilray and Canopy Growth saw their stock prices drop significantly, with Tilray down 10% and Canopy Growth down 4.6%, while retailer SNDL fell over 13% in Monday's trading session.
Cannabis ETFs Surge by Double Digits on Friday: Find Out the Reasons
Cannabis Stock Surge: On December 12, 2025, cannabis stocks experienced a significant surge, with the Amplify Seymour Cannabis ETF rising over 54% due to reports of President Trump's plans to reclassify marijuana from Schedule I to Schedule III, which could ease federal regulations and encourage investment.
Potential Reclassification Impact: The reclassification would allow cannabis companies to benefit from different tax regulations and potentially increase pharmaceutical acceptance, although uncertainties remain regarding the final policy confirmation.
Market Reactions: Other cannabis ETFs also saw substantial gains on the same day, including Roundhill Cannabis ETF (up 55.7%) and Advisorshares Pure US Cannabis ETF (up 54.3%), reflecting heightened investor optimism in the sector.
Long-term Industry Outlook: Despite recent gains, the cannabis industry has faced challenges, with stocks like Tilray down significantly over the past five years; however, the current political climate under Trump's second term appears to be more favorable for the industry.
Cannabis Stocks Rise as Trump Considers Easing Regulations, Despite Previous Statements.
Surge in Cannabis Stocks: Cannabis stocks, particularly Tilray Brands and Canopy Growth, experienced a significant increase following news of potential federal restrictions on marijuana being loosened.
Market Reaction: The enthusiasm in the market may have been overly optimistic regarding the implications of President Donald Trump's potential policy changes on cannabis.
Tilray and Canopy Stocks Rise Following Reports of Trump's Plans to Ease Marijuana Regulations
Cannabis Stocks Surge: Tilray Brands and Canopy Growth experienced a significant increase in stock prices.
Federal Policy Change: The surge was attributed to reports that President Donald Trump plans to ease federal restrictions on marijuana.
Cannabis Stocks Soar Following Reports of Trump's Plans to Reclassify Marijuana; Tilray Rises 33%
Cannabis Stock Surge: Cannabis stocks experienced a significant increase, with Tilray Brands rising over 33% and Canopy Growth jumping 23% following reports of potential federal easing on marijuana restrictions by President Trump.
Reclassification of Marijuana: Trump is expected to instruct agencies to reclassify marijuana as a Schedule III drug, which would change its legal status and potentially attract more investment in the cannabis industry.
Impact on Industry Regulations: The reclassification could allow banks to service cannabis companies and enable states to regulate marijuana more effectively, according to analysts.
Market Performance Context: Despite the recent surge, cannabis stocks have struggled overall, with Tilray down 36% for the year prior to the recent jump, and the Amplify Cannabis ETF projected to lose over 8% in 2025, marking its fifth consecutive negative year.
Last Week's Six Best-Performing ETF Sectors
Market Performance: Last week, the S&P 500 fell by 0.6%, while the Dow Jones rose by 1.1% and the Nasdaq dropped by 1.6%, primarily due to declines in tech stocks, including a 14% drop in Oracle's shares.
Federal Reserve Actions: The Fed implemented its final rate cut of the year, lowering the benchmark federal funds rate to 3.5%-3.75%, with projections indicating a more restrained outlook for 2026.
ETF Highlights: Notable ETF performances included significant gains in the cannabis sector, with the Roundhill Cannabis ETF up 51.2%, and strong performances in silver miners and the space economy, driven by rising demand and investor interest.
Emerging Trends: The Roundhill GLP-1 & Weight Loss ETF gained 6.3%, reflecting optimism in weight loss drugs as a major advancement in pharmaceuticals, while platinum prices surged due to anticipated market deficits.
Trump indicates he is 'seriously' contemplating reclassifying marijuana through an executive order.
Market Reaction to Trump's Comments: Despite President Trump's indication of considering an executive order to reclassify marijuana, pot stocks, including the Amplify Seymour Cannabis ETF, experienced a decline, with the ETF down nearly 7% after a significant surge on Friday.
Potential Reclassification Impact: Trump suggested that reclassifying marijuana from a Schedule I to a Schedule III substance could facilitate more research and attract investment, with industry insiders expressing increased optimism about the potential for this change.
Historical Context: The discussion around marijuana reclassification is not new, as Trump had previously mentioned the possibility in August, and the recent comments have reignited hopes for a shift that could benefit the cannabis industry.
Stock Performance of Major Producers: Major cannabis producers like Tilray and Canopy Growth saw their stock prices drop significantly, with Tilray down 10% and Canopy Growth down 4.6%, while retailer SNDL fell over 13% in Monday's trading session.
Cannabis ETFs Surge by Double Digits on Friday: Find Out the Reasons
Cannabis Stock Surge: On December 12, 2025, cannabis stocks experienced a significant surge, with the Amplify Seymour Cannabis ETF rising over 54% due to reports of President Trump's plans to reclassify marijuana from Schedule I to Schedule III, which could ease federal regulations and encourage investment.
Potential Reclassification Impact: The reclassification would allow cannabis companies to benefit from different tax regulations and potentially increase pharmaceutical acceptance, although uncertainties remain regarding the final policy confirmation.
Market Reactions: Other cannabis ETFs also saw substantial gains on the same day, including Roundhill Cannabis ETF (up 55.7%) and Advisorshares Pure US Cannabis ETF (up 54.3%), reflecting heightened investor optimism in the sector.
Long-term Industry Outlook: Despite recent gains, the cannabis industry has faced challenges, with stocks like Tilray down significantly over the past five years; however, the current political climate under Trump's second term appears to be more favorable for the industry.
Cannabis Stocks Rise as Trump Considers Easing Regulations, Despite Previous Statements.
Surge in Cannabis Stocks: Cannabis stocks, particularly Tilray Brands and Canopy Growth, experienced a significant increase following news of potential federal restrictions on marijuana being loosened.
Market Reaction: The enthusiasm in the market may have been overly optimistic regarding the implications of President Donald Trump's potential policy changes on cannabis.
Tilray and Canopy Stocks Rise Following Reports of Trump's Plans to Ease Marijuana Regulations
Cannabis Stocks Surge: Tilray Brands and Canopy Growth experienced a significant increase in stock prices.
Federal Policy Change: The surge was attributed to reports that President Donald Trump plans to ease federal restrictions on marijuana.
Cannabis Stocks Soar Following Reports of Trump's Plans to Reclassify Marijuana; Tilray Rises 33%
Cannabis Stock Surge: Cannabis stocks experienced a significant increase, with Tilray Brands rising over 33% and Canopy Growth jumping 23% following reports of potential federal easing on marijuana restrictions by President Trump.
Reclassification of Marijuana: Trump is expected to instruct agencies to reclassify marijuana as a Schedule III drug, which would change its legal status and potentially attract more investment in the cannabis industry.
Impact on Industry Regulations: The reclassification could allow banks to service cannabis companies and enable states to regulate marijuana more effectively, according to analysts.
Market Performance Context: Despite the recent surge, cannabis stocks have struggled overall, with Tilray down 36% for the year prior to the recent jump, and the Amplify Cannabis ETF projected to lose over 8% in 2025, marking its fifth consecutive negative year.
