President Trump recently confirmed that his administration is considering reclassifying marijuana as a less dangerous drug — a move that could dramatically change the marijuana law landscape and impact the U.S. economy.
Currently, marijuana is classified as a Schedule I drug — alongside heroin, LSD, and MDMA. Under existing marijuana laws, these drugs are considered highly dangerous and defined as having no acceptable medical use.
Now, Trump is considering reclassifying marijuana as a Schedule III drug, a major shift in marijuana law that would align it with substances like testosterone, estrogen, and caffeine — drugs that have accepted medical uses and a lower risk of abuse.
“We’re looking at reclassification and we’ll make a determination over the next few weeks, and that determination hopefully will be the right one,” Trump said at a recent news conference. “It’s a very complicated subject.”
While this change wouldn’t federally legalize marijuana, experts believe it could unleash billions in untapped potential within the hemp and cannabis sectors. According to Grand View Research, this marijuana law shift could have a major economic impact and even reshape the stock market.
If Trump reclassifies marijuana from Schedule I to Schedule III, the effects could ripple through the economy almost instantly. Cannabis businesses would gain access to major tax breaks something currently blocked under existing marijuana laws. Reclassification would also make it easier for scientists to conduct federally approved research, potentially opening new markets and uncovering new medical applications.
A number of cannabis stocks already trade on the NYSE, and this move could send valuations soaring. Investors are watching closely as the Trump administration considers its options.
Still, not everyone agrees. The National Sheriffs’ Association has voiced opposition, claiming that marijuana has a “high abuse potential” and has been linked to fatal vehicle crashes. Even so, Trump acknowledged the divide, saying, “I’ve heard great things having to do with medical, and I’ve heard bad things having to do with just about everything else. Some people like it, some people hate it.”
Public opinion also plays a role. Polling from Gallup shows that 64% of Americans now support marijuana legalization a sign that marijuana law reform under Trump could align with growing public sentiment.
As the Trump administration weighs this critical decision, both Wall Street and the cannabis industry are bracing for what could become a historic milestone in U.S. marijuana law reform.