Shares of Canopy Growth Corp (NASDAQ:CGC) jumped 19.2% on Monday amid reports that President Donald Trump is considering lowering marijuana’s federal classification, a move that could reshape the regulatory environment for the cannabis industry.
Other leading cannabis firms also experienced significant gains, with Tilray (NASDAQ:TLRY) soaring 17.7%, Cronos Group (NASDAQ:CRON) rising 14.3%, Aurora Cannabis (NASDAQ:ACB) up 8.7%, and SNDL (NASDAQ:SNDL) increasing 6.6%.
The Wall Street Journal, citing sources familiar with the discussion, reported that Trump raised the possibility of reclassifying marijuana during a recent $1 million-per-plate fundraiser held at his New Jersey golf club. Such a change would substantially reduce federal restrictions on cannabis sales and purchases, potentially enhancing profitability throughout the sector.
The proposed policy shift follows substantial contributions from cannabis companies to Trump’s political organizations. Among those attending the fundraiser was Trulieve CEO Kim Rivers, who reportedly advocated for marijuana reclassification and greater medical research into cannabis.
Earlier efforts to reclassify marijuana were initiated by the Biden administration but were left unfinished before the end of its term. A federal reclassification would mark a significant breakthrough for the cannabis industry, which continues to face considerable regulatory challenges despite widespread legalization at the state level.
The recent stock surges reflect investor confidence that federal reforms could open new markets and simplify operations for cannabis businesses navigating the complex patchwork of state laws.
Canopy Growth Corp stock price
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