Stocktwits - Retail sentiment picked up Sunday for Aurora Cannabis (TSX:ACB), Canopy Growth (NASDAQ:CGC), Cronos Group (NASDAQ:CRON) and Trulieve Cannabis (CSE:TRUL) (TCNNF) after reports that U.S. President Donald Trump may reclassify marijuana as a less dangerous drug.
The Wall Street Journal said that at a $1 million-a-plate fundraiser at his New Jersey golf club earlier this month, Trump told guests he was interested in the change, signaling an effort the Biden administration had started but never completed.
Reclassification to Schedule III would ease restrictions, allow tax breaks, and expand medical research. Trulieve CEO Kim Rivers reportedly urged Trump to pursue the shift and expand research. Trump flagged the idea to staff. Other guests included Pfizer’s CEO, cryptocurrency executives, and political advisers.
Cannabis companies have contributed millions to Trump’s political groups, hired lobbyists close to him, and backed American Rights and Reform PAC, which gave $1 million to Trump’s PAC and commissioned polling from Trump pollster Tony Fabrizio showing Republican and independent voter support.
The PAC also paid $300,000 to Trump adviser Alex Bruesewitz for social media and advertising work.
Bruesewitz said, “This is not calling for decriminalization or legalization but simply knocking it down a few notches on the criminal scale.”
Trump said last year he would vote for legalization in Florida after meeting with Trulieve and lobbyist Brian Ballard. Senior officials said he does not personally support marijuana but is interested in “80-20 cultural issues” with broad backing and has referenced friends who used medical marijuana.
Opposition groups include Smart Approaches to Marijuana, which has run ads on Fox programs, and the Community Anti-Drug Coalitions of America, which urged members to contact the White House.
White House spokeswoman Abigail Jackson said, “All policy and legal requirements and implications are being considered. The only interest guiding the president’s policy decisions is what is in the best interest of the American people.”
One user noted that cannabis company stocks jumped between 30% and 40% after multiple reports in April 2024 that marijuana would be reclassified to a less dangerous drug schedule.
Another user pointed out that the last time there was similar regulatory talk, ACB rose sharply to more than $8 a share, and said it should be “an interesting week to say the least.”
So far this year, ACB is up 5.4%, CGC is down 54.4%, CRON is up 13.9% and TCNNF is up 10.5%.
