Latest news with #reclassification
CTV News
4 hours ago
- Business
- CTV News
How U.S. marijuana reclassification could help cannabis companies
Cannabis clones are displayed for customers at Home Grown Apothecary in Portland, Ore. (AP Photo/Jenny Kane) U.S. President Donald Trump's administration is looking to reclassify marijuana as a less dangerous drug, a shift that could ease criminal penalties and reshape the pot industry by lowering tax burdens and making it easier for firms to secure funding. Trump said on Monday a decision could come within the next couple of weeks. U.S.-listed cannabis-linked stocks rose in pre-market trading on Tuesday, led by a 13 per cent jump in Canopy Growth. Organigram Global, SNDL, Aurora Cannabis and Tilray Brands gained between three and 12 per cent. What does reclassifying entail? Under the Controlled Substances Act, marijuana is listed as a Schedule I substance, meaning it has a high potential for abuse and no current accepted medical use. Reclassifying marijuana as a less dangerous drug could unlock banking access for pot producers, attract institutional investors, reduce tax burden and spur mergers and acquisitions. Securing funding remains one of the biggest challenges for cannabis producers, as federal restrictions keep most banks and institutional investors out of the sector, forcing pot producers to turn to costly loans or alternative lenders. Last year, the Biden administration asked the Department of Health and Human Services to review marijuana's classification, and the agency recommended moving it to Schedule III, a category for substances with a moderate to low risk of physical or psychological dependence. What would be the tax implications? One of the biggest benefits from a reclassification would be that cannabis firms would no longer be subject to Section 280E of the U.S. federal tax code. That provision prevents businesses dealing in Schedule I and II controlled substances from claiming tax credits and deductions for business expenses. What comes next? TD Cowen analyst Jaret Seiberg said full legalization remains unlikely, citing a lack of meaningful support in Congress and limits on how far the Drug Enforcement Administration (DEA) can go through rescheduling alone. 'It seems more likely to us that Trump would revive the effort at the DEA to move cannabis to Schedule III, which would permit the government to regulate it,' said Seiberg. Some analysts, however, say a reclassification will not change much. Cannabis will remain federally illegal, interstate trade will not be allowed and the silo system of each state deciding their own market rules will still apply, according to equity research firm Zuanic & Associates. (Reporting by Mrinalika Roy and Arunima Kumar in Bengaluru; Editing by Saumyadeb Chakrabarty)
Yahoo
16 hours ago
- Health
- Yahoo
Trump says his administration looking at reclassifying marijuana
President Donald Trump on Monday confirmed he and his administration are considering reclassifying marijuana as a less dangerous drug. Trump told reporters that it was early in the process but that he hoped to make a decision on the matter within the coming weeks. "We're looking at reclassification and we'll make a determination over the next -- I would say over the next few weeks, and that determination hopefully will be the right one. It's very complicated subject," Trump said as he held a news conference in the White House briefing room. Trump was in the briefing room to announce a federal takeover of Washington's police force and deployment of the National Guard to deal, he said, with the city's crime and homelessness. He was asked at the news conference if reclassifying marijuana would send mixed messages as his administration says it wants to "clean up" crime in the nation's capital and potentially other cities. The Wall Street Journal first reported that Trump was weighing rescheduling marijuana from a Schedule 1 drug to a Schedule 3 drug. Classified as a Schedule 1 drug, marijuana is listed alongside heroin and LSD as "drugs with no currently accepted medical use and a high potential for abuse." By contrast, Schedule 3 drugs are define as those with "moderate to low potential for physical and psychological dependence" and include ketamine, anabolic steroids and testosterone. During the final year of the Biden administration, the Drug Enforcement Administration said it supported recommending the reclassification of marijuana. Reclassifying marijuana would allow for more research into the drug and provide tax benefits to the cannabis industry. Trump on Monday said he's heard good and bad things regarding the drug. "I've heard great things having to do with medical, and I've had bad things having to do with just about everything else. But medical, and, you know, for pain and various things," Trump said. "Some people like it, some people hate it," the president said.
Yahoo
a day ago
- Health
- Yahoo
Trump says his administration looking at reclassifying marijuana
President Donald Trump on Monday confirmed he and his administration are considering reclassifying marijuana as a less dangerous drug. Trump told reporters that it was early in the process but that he hoped to make a decision on the matter within the coming weeks. "We're looking at reclassification and we'll make a determination over the next -- I would say over the next few weeks, and that determination hopefully will be the right one. It's very complicated subject," Trump said as he held a news conference in the White House briefing room. Trump was in the briefing room to announce a federal takeover of Washington's police force and deployment of the National Guard to deal, he said, with the city's crime and homelessness. He was asked at the news conference if reclassifying marijuana would send mixed messages as his administration says it wants to "clean up" crime in the nation's capital and potentially other cities. The Wall Street Journal first reported that Trump was weighing rescheduling marijuana from a Schedule 1 drug to a Schedule 3 drug. Classified as a Schedule 1 drug, marijuana is listed alongside heroin and LSD as "drugs with no currently accepted medical use and a high potential for abuse." By contrast, Schedule 3 drugs are define as those with "moderate to low potential for physical and psychological dependence" and include ketamine, anabolic steroids and testosterone. During the final year of the Biden administration, the Drug Enforcement Administration said it supported recommending the reclassification of marijuana. Reclassifying marijuana would allow for more research into the drug and provide tax benefits to the cannabis industry. Trump on Monday said he's heard good and bad things regarding the drug. "I've heard great things having to do with medical, and I've had bad things having to do with just about everything else. But medical, and, you know, for pain and various things," Trump said. "Some people like it, some people hate it," the president said.
Bloomberg
a day ago
- Business
- Bloomberg
Pot Stocks Soar on Report Trump Mulling Drug Reclassification
Shares of cannabis-linked companies rallied on Monday after a report that President Donald Trump was considering reclassifying marijuana as a less dangerous drug — giving the sector a much needed boost. The stock of greenhouse production firm Village Farms International Inc. surged as much as 42% on Monday, its biggest intraday jump since June 2017. Tilray Brands Inc., Canopy Growth Corp., Aurora Cannabis Inc., SNDL Inc. and Cronos Group Inc. all climbed by double digits after the Wall Street Journal reported that the US president was interested in making the change.
Reuters
a day ago
- Politics
- Reuters
Trump says administration is considering reclassifying marijuana
WASHINGTON, Aug 11 (Reuters) - President Donald Trump said on Monday that his administration is looking at reclassifying marijuana as a less dangerous drug and potentially lower criminal penalties, but no final decision has been made. Speaking to reporters at the White House briefing room, Trump said a decision could come within the next couple of weeks.
