Trump Admin Plans To Loosen Federal Weed Restrictions

There was no public love for 4/20 from the federal government this year—but don’t be surprised if they show up sometime this week with flowers. Yesterday, multiple outlets reported that Trump administration officials are on the verge of downgrading the danger designation for marijuana, which would be the biggest shift in federal cannabis policy in decades.

The Trump admin is reportedly weighing several different paths to reclassify weed from the Schedule I drug category, where it had long been listed alongside heroin, ecstasy, LSD, and other compounds that are deemed dangerous and without any therapeutic value. Weed would become a Schedule III drug, next to common prescription painkillers, anabolic steroids, ketamine, and other medically useful substances.

The less rigid approach could unburden medical marijuana research and potentially boost profits for the cannabis industry.

Liberalization, not legalization

Uncle Sam becoming more chill with Mary Jane might not change much for the average Rick and Morty fan—crucially, it wouldn’t make weed federally legal—but:

• It may encourage more research into the benefits and risks of the drug, potentially boosting cannabis-based pharmaceutical development.
• Cannabis farms and dispensaries would be able to deduct various expenses from their federal taxes, which is currently forbidden for costs related to Schedule I drugs. It could also make it easier for them to seek investment.

Shares of weed stocks popped yesterday, with AdvisorShares Pure US Cannabis ETF spiking 19% on the news.

High hopes

In December, President Trump signed an executive order directing federal agencies to loosen restrictions on marijuana, continuing a similar effort by the Biden administration. The Washington Post reported that Trump has been frustrated with how long the rescheduling process takes.

Advocates argue that the government embracing a lighter-touch approach to marijuana could help patients access cannabis-based treatments for severe pain and mental health conditions. More than half of Americans say it should be legal, though support for legalization has declined in recent years, according to a recent YouGov poll. Meanwhile, about 1 in 5 Americans aged 12 and older say they use the drug at least once a year, per government data.

ICYMI…Trump signed an executive order on Saturday to expedite research into how some psychedelics, including ibogaine, can be useful for treating mental disorders.—SK