Cannabis Stocks Surge in 2025 Following DEA’s Proposed Marijuana Reclassification
In 2025, cannabis stocks experienced a significant rally after the U.S. Drug Enforcement Administration revealed plans to reclassify marijuana to a less restrictive drug category, signaling a potential shift in federal drug policy.
Colin serves as an Associate Editor specializing in technology and financial news, bringing over three years of expertise in editing, fact-checking, and analyzing current financial and political affairs. He holds an M.A. in journalism from The New School and a B.A. in history and political science from McGill University.
Key Insights
- On Tuesday, cannabis company shares surged after the Associated Press disclosed that the DEA intends to propose marijuana's reclassification to a less dangerous schedule.
- Currently, marijuana is a Schedule I substance, grouped with heroin and LSD, denoting high abuse potential and no accepted medical use.
- The suggested reclassification to Schedule III would align marijuana with drugs like ketamine and anabolic steroids, indicating moderate to low risk of dependency.
The cannabis market experienced a notable boost after reports emerged that the U.S. Drug Enforcement Administration plans to redefine marijuana’s classification to reflect its medical benefits and lower abuse potential.
This proposed change acknowledges marijuana’s therapeutic properties and repositions it as a Schedule III drug, a category that suggests reduced risk compared to Schedule I substances.
Although this reclassification does not legalize marijuana at the federal level, it marks a pivotal policy shift likely to influence public perception and future legislation.
Currently, 38 states permit medical marijuana use, and 24 states allow recreational use, setting the stage for broader acceptance.
Following the announcement, cannabis-related stocks soared significantly: the AdvisorShares Pure US Cannabis ETF (MSOS) climbed 22%, Canopy Growth Corp. (CGC) rose by 54%, and Curaleaf Holdings (CURLF) increased 18% within the same trading session.
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