Washington, United States. The U.S. Department of Justice is reclassifying FDA-approved and state-licensed marijuana as a less-dangerous drug, Acting Attorney General Todd Blanche said on Thursday. The move does not legalize marijuana across the United States.
Rescheduling announcement
In a post on X, Blanche said the Justice Department was “immediately rescheduling FDA-approved marijuana and state-licensed marijuana from Schedule I to Schedule III.”
The department said in a statement it is also initiating an expedited hearing to consider the broader rescheduling of marijuana.
“This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information,” Blanche said in a statement.
Policy context and industry impact
The decision represents one of the most significant federal changes to marijuana policy in decades, removing barriers to researching the drug’s potential use. The move follows a December executive order from President Donald Trump directing the Justice Department to loosen marijuana restrictions.
The rescheduling will likely reshape the cannabis industry by lowering tax burdens and making it easier for firms to secure funding, benefiting companies such as Canopy Growth, Tilray Brands, and Trulieve Cannabis.
Market reaction and state-level trends
U.S.-listed shares of cannabis companies rose following the decision. Shares of Cronos Group, Aurora Cannabis, Canopy, and Tilray gained between 6% and 13%.
Marijuana has for years been classified at the same level as drugs such as heroin even as nearly half of U.S. states have moved to legalise cannabis over the last several years. The Biden administration embarked on a similar move in 2024, but the measure was not finalized when Trump returned to office.
How do you think the rescheduling could affect research and investment in the U.S. cannabis industry?
