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.
Trade with 70% Backtested Accuracy
Analyst Views on CNBS
About the author


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 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.

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.

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.
Marijuana ETF Resurgence: Marijuana Exchange-Traded Funds (ETFs) have seen a significant rebound, with some increasing over 100% in the past three months, following a challenging 2024, largely due to renewed optimism from potential U.S. legalization efforts and political support from figures like President Trump.
Market Challenges and Opportunities: Despite a strong demand for cannabis, the market faced heavy losses in 2024 due to regulatory issues, high taxes, and competition from the illicit market; however, recent developments regarding the rescheduling of cannabis have sparked renewed investor interest in various cannabis-focused ETFs.

ETF Convenience: Cannabis-based ETFs provide U.S. investors with a convenient way to invest in the cannabis sector, especially since many cannabis stocks do not trade on major exchanges like NYSE or Nasdaq. Despite the volatility and limited access to individual stocks, ETFs like AdvisorShares Pure US Cannabis ETF (MSOS) and Amplify Seymour Cannabis ETF (CNBS) are popular options for exposure to this market.
Federal Reform and Investment Strategies: While some investors remain hopeful for federal reform that could benefit the cannabis industry, others believe there are still viable investment opportunities regardless of such changes. Investors like Tim Seymour focus on identifying resilient companies within the sector, suggesting that cannabis can be a growth opportunity even without immediate regulatory improvements.








