President Trump is set to deliver a massive victory for states’ rights and free market principles by reclassifying marijuana as early as Monday, dismantling decades of federal overreach that has stifled legitimate businesses and individual liberty.
Story Highlights
- Trump expected to sign an executive order Monday reclassifying marijuana from Schedule I to Schedule III
- Cannabis stocks surge over 50% as markets anticipate end to federal regulatory stranglehold
- Reclassification would allow legitimate banking services and fairer tax treatment for cannabis businesses
- Move represents the fulfillment of Trump’s August 2025 campaign promise to restore a common-sense drug policy
Trump Delivers on Promise to End Federal Cannabis Overreach
President Donald Trump is expected to issue an executive order as soon as Monday, instructing federal agencies to reclassify marijuana from Schedule I to Schedule III, according to sources familiar with the White House plans.
This decisive action would move cannabis out of the same regulatory category as heroin and into a lower tier alongside drugs like steroids and Tylenol with codeine. The move fulfills Trump’s August 2025 campaign commitment to restore rational drug policy that respects both science and state sovereignty.
Trump expected to sign executive order to reclassify marijuana as soon as Monday, source tells CNBC; pot stocks surge
/position+ $MSOS 🇺🇸🌿https://t.co/Bra5IC45rv pic.twitter.com/72wIorjOcd
— Todd Harrison (@todd_harrison) December 12, 2025
Market Responds with Record-Breaking Gains
Cannabis stocks experienced explosive growth on Friday, December 12, 2025, as news of Trump’s impending executive order spread through financial markets.
Major cannabis producers Tilray Brands and Canopy Growth surged 44% and 52% respectively, while the Amplify Seymour Cannabis ETF rallied an unprecedented 54% for its best trading day on record.
These dramatic gains reflect investor confidence that Trump’s pro-business approach will finally unleash the sector’s economic potential after years of government-imposed restrictions.
Banking and Tax Relief for Legitimate Businesses
The reclassification would provide immediate relief to cannabis companies that have been unfairly penalized by federal regulations despite operating legally under state laws.
Ed Groshans of Compass Point Investment Bank noted the change would be “positive” for the industry by allowing banks to serve legitimate cannabis businesses without fear of federal persecution.
Additionally, these companies would benefit from different tax regulations, encouraging further investment in an American industry that has been artificially suppressed by outdated federal policies.
Industry Leaders Embrace New Era of Regulatory Sanity
Cannabis industry executives and legal experts are expressing unprecedented optimism about Trump’s forthcoming action. Tilray CEO Irwin Simon told CNBC he’s “a lot more optimistic than I ever have been,” while Vicente LLP partner Shawn Hauser described the move as “the beginning of a new era of public health policy.”
The Drug Enforcement Administration is expected to finalize the reclassification rule by summer 2025, creating a clear regulatory framework that respects both federal authority and state-level decision-making.
Constitutional Victory for States’ Rights
This executive action represents a significant victory for constitutional principles and limited government. For decades, federal marijuana prohibition has created an untenable situation where law-abiding businesses operating under state authority faced federal prosecution and banking discrimination.
Trump’s decision to reclassify cannabis acknowledges what many conservatives have long argued: that drug policy should be based on scientific evidence rather than government bureaucracy, and states should have greater authority to regulate commerce within their borders without federal interference.
