Bill Schmidt Jr. (C) joins cannabis reform protesters in front of the White House on October 24, 2022 in Washington, DC, calling on US President Joe Biden to “take action on cannabis tolerance before the general election in November.”
Win McNamee | Getty Images
Marijuana stocks did not rise for the second day in a row on Monday, even after President Donald Trump admitted he was considering issuing an executive order to loosen marijuana regulations.
of Amplify Seymour Cannabis ETF (CNBS) It rose in afternoon trading after President Trump said he was considering reclassifying the drug. Still, the fund fell nearly 7% as investors took profits after Friday’s jump of more than 50%.
Asked Monday if he was considering an executive order on rescheduling marijuana, President Trump said, “I’m considering it.”
“A lot of people want reclassification because it would lead to a huge amount of research that would not be possible without reclassification,” he says. “So we’re looking at that very strongly.”
Trump’s comments followed reports on Friday that the president is considering directing federal agencies to reclassify marijuana from a Schedule I substance to a less regulated Schedule III drug. Officials told CNBC that an order could come from the White House as early as Monday.
The report sparked a rally in the sector on Friday, with the Amplify Seymour Fund posting its best day ever. The ETF has returned to positive territory for the year, putting it on track to end its four-year losing streak.
Industry officials have long predicted that the reclassification would move marijuana from a group of drugs that includes heroin to a group alongside steroids, Tylenol and codeine. President Trump suggested reclassifying marijuana in August.
But they said there was an optimistic outlook that enough momentum existed to get such a move across the finish line, which could help warm banks and big investors to the sector.
“I’m much more optimistic than ever.” Tilray CEO Irwin Simon told CNBC on Friday.
Weed producer Tilray canopy growth They fell 10% and 4.6%, respectively, in Monday trading. retailer SNDL It fell more than 13%.
—CNBC’s Kevin Breuninger and Brandon Gomez contributed reporting.
