The US Department of Justice said it would immediately loosen restrictions on certain marijuana products and fast-track efforts to reclassify the drug, marking one of the most significant shifts in US drug policy in decades.
The move stopped short of legalising marijuana nationwide but was expected to reshape the rapidly growing cannabis industry, valued at about $47 billion, which has long faced federal regulatory barriers despite widespread state-level legalisation.
Under the changes, state-regulated medical marijuana products would be moved from the most restrictive category of drugs reserved for substances such as heroin to a less stringent classification applied to drugs with low to moderate potential for abuse, including some painkillers and treatments like ketamine and testosterone. Marijuana products approved by the US Food and Drug Administration would also fall under this less restrictive category.
Acting Attorney General Todd Blanche said the government would accelerate broader efforts to reclassify all uses of marijuana as less dangerous.
“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.
The policy shift followed a December executive order by Donald Trump directing the Justice Department to ease marijuana restrictions.
The changes were expected to reduce barriers to scientific research, ease tax burdens on cannabis businesses, and improve access to financing for companies operating in the sector. Major firms such as Tilray Brands, Canopy Growth and Trulieve Cannabis stood to benefit, as they expand both consumer products and pharmaceutical research into cannabis-based treatments for conditions including pain, anxiety and cancer symptoms.
Shares of US-listed cannabis companies initially rose between 6% and 13% following the announcement but later reversed gains as investors assessed the limited immediate scope of the reforms.
Tilray CEO Irwin Simon described the development as a turning point. “Today marks a pivotal moment for the United States. With President Trump’s action to reschedule cannabis, federal policy is finally aligning with science, medicine, and most importantly, patient needs,” he said.
Marijuana’s longstanding classification as a Schedule I drug defined as having high abuse potential and no accepted medical use has been widely criticised, especially as more states moved to legalise its use. According to the Congressional Research Service, 24 states and the District of Columbia have legalised recreational use, while 40 states have fully legalised medical marijuana.
Market projections indicate legal cannabis sales could surpass $47 billion by 2026, according to industry research firm BDSA.
Further policy adjustments have already begun to take shape. Following Trump’s directive, the Centers for Medicare and Medicaid Services allowed some eligible beneficiaries to access hemp-derived products, including cannabidiol (CBD), under clinical supervision.
However, Trump signalled that additional reforms may be necessary. In a social media post, he urged Congress to expand access to the “full-spectrum” of CBD products while maintaining safeguards against potentially harmful substances.
Despite growing support for reform, critics continued to raise concerns. Republican Senator Tom Cotton warned that loosening restrictions could increase drug use among minors, reduce workplace productivity and heighten traffic safety risks.
“Marijuana today is much more potent than just ten or twenty years ago, leading to increased psychosis, anti-social behavior and fatal car crashes,” Cotton said, adding that reclassification would be “a step in the wrong direction.”
Marijuana remained the most widely used illicit drug in the United States, with nearly one in five Americans reporting annual use, according to the Centers for Disease Control and Prevention.
The Justice Department said it would begin formal proceedings on June 29 to gather evidence and expert opinion on the broader reclassification effort, setting the stage for further policy changes in the months ahead.
Erizia Rubyjeana
Follow us on:
