US set to move to reclassify marijuana as early as Wednesday, Axios reports
WASHINGTON, April 22 (Reuters) – According to Axios, the U.S. administration is expected to take action to reclassify marijuana on Wednesday, causing U.S. stocks of marijuana-related companies to rise, according to an official with knowledge of the matter.
The decision to reclassify marijuana would represent one of the most significant federal changes to marijuana policy in decades, removing barriers to researching potential uses for the drug.
In December, US President Donald Trump signed an executive order directing the loosening of federal regulations on marijuana, paving the way for reclassification.
The move could lead to the psychoactive plant being listed as a less dangerous drug alongside common painkillers, ketamine and testosterone.
It will also reshape the cannabis industry by reducing tax burdens and make it easier for companies to obtain financing, benefiting companies such as Canopy Growth, Tilray Brands, Trulieve Cannabis.
Following the Axios report, US-listed Canopy shares rose 23% and Tilray rose 15%.
The Justice Department and the Drug Enforcement Administration did not immediately respond to requests for comment. The decision to reclassify marijuana rests with the DEA.
Marijuana is the most widely used illicit drug in the world and in the United States. Almost one in five U.S. residents use it once a year, according to the U.S. Centers for Disease Control and Prevention, Reuters reported in December.
(Reporting by Bhargav Acharya and Daphne Psaledakis, additional reporting by Padmanabhan Ananthan; Editing by Caitlin Webber)
