President Trump directed the federal government to reclassify cannabis as a less-dangerous drug, a seismic shift in U.S. drug policy https://t.co/uBTxiWUPG6 ...

Core Insights - President Donald Trump is expected to sign an executive order to expand access to cannabis, which could significantly impact consumers and the healthcare industry [1][2] - The order may reclassify cannabis as a Schedule III drug, allowing Medicare to cover cannabis products for seniors, particularly CBD aimed at treating chronic pain and other age-related ailments [2][3] Industry Implications - The proposed changes are anticipated to facilitate research and development in the cannabis sector, as reclassification would ease regulatory barriers [5][15] - Institutional investors are likely to be attracted to the cannabis sector due to the potential for Medicare coverage, which could lead to increased valuations and liquidity in the market [5][6][19] - The U.S. cannabis production value increased by 40% last year, with the global market for cannabis-derived products projected to reach $160 billion by 2032 [18] Regulatory Landscape - The executive order is expected to define legal cannabinoids and establish a framework for FDA oversight, which could legitimize the cannabis sector for institutional investors [4][5] - The Medicare initiative, championed by financier Howard Kessler, aims to gather real-world data on the safety and outcomes of cannabinoids for seniors, bypassing traditional FDA hurdles [9][10] Market Dynamics - Stocks of cannabis companies have already seen significant increases, with Tilray Brands and Canopy Growth shares rising by 44% and 52% respectively, following rumors of the executive order [18] - A Schedule III classification could lead to more cannabis stocks being listed on major exchanges, shifting market sentiment from retail to fundamental cash flows [19][20] Competitive Landscape - The potential for Medicare coverage may attract major pharmaceutical companies, leading to increased competition and consolidation within the cannabis sector [21][23] - Smaller cannabis companies may face challenges as larger pharmaceutical firms have the resources to conduct extensive clinical trials, which could reshape the market dynamics [22][23]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...