The Department of Justice to Accelerate Marijuana Evaluation This decision is expected to boost the cannabis industry by reducing taxes and making financing more accessible. Stocks of major cannabis companies soared after the announcement. The move reclassifies marijuana, formerly categorized with drugs like heroin. The U.S. Department of Justice announced an immediate easing of restrictions on marijuana-based products, marking a significant shift in drug policy.
The measures are likely to reshape the cannabis industry, making it easier for companies to conduct research on the potential health benefits of the drug, reduce tax burdens, and facilitate easier access to funding. The announcement does not legalize marijuana nationwide.
“This reclassification allows for research on the safety and efficacy of this substance, enabling patients to receive better care and doctors to have more reliable information,” said Acting Attorney General Todd Blanche in a statement.
The decision follows a directive by President Donald Trump in December, instructing the Department of Justice to relax restrictions on marijuana. This move is expected to benefit the growing cannabis industry in the U.S., with companies like Canopy Growth, Tilray Brands, Trulieve Cannabis, Cronos Group, and Aurora Cannabis seeing significant stock increases.
Irwin Simon, CEO of Tilray, described the reclassification as aligning federal policy with science, medicine, and patient needs. Marijuana’s status as a Schedule I drug, with high potential for abuse and no recognized medical use, has been criticized as outdated, especially with the drug legalized in nearly half of U.S. states.
Legal sales are projected to reach $47 billion by 2026, according to BDSA market research institute. Marijuana is the most commonly used illicit drug globally and in the U.S., with about one in five Americans consuming it annually. Millions of Americans have been arrested for possession, while publicly traded businesses sell cannabis-related products.
The Biden administration had committed to a similar initiative in 2024, but the measure was not finalized when Trump returned to power and the Drug Enforcement Administration abandoned the initiative. Blanche announced that a hearing will begin on June 26 to gather evidence and insight from experts on the drug’s reclassification.
