Trump Signals Softer Cannabis Regulation — Sector Stocks Go Vertical

Shares of U.S.-listed cannabis companies jumped on Friday after the Washington Post reported that President Donald Trump is preparing to direct federal agencies to significantly loosen restrictions on marijuana.

Tilray Brands surged as much as 28% in premarket trading, while SNDL, Canopy Growth and the popular ETF AdvisorShares Pure U.S. Cannabis (MSOS) gained between 13.5% and 32.5%. By early morning action, MSOS was briefly up more than 35%, marking one of the sector’s strongest intraday moves this year.

According to the report, Trump intends to push agencies to reclassify marijuana as a Schedule III drug, placing it in the same regulatory category as several prescription painkillers. The shift would reduce federal oversight and enable broader commercial activity within the industry, which has long been restricted under U.S. federal law.

The move, if confirmed, would represent the most significant federal policy relaxation on cannabis in decades, potentially unlocking access to banking, investment capital and interstate operations — key constraints that have limited the sector’s growth.

Market reaction was immediate and sharp. Traders noted that retail flow and algorithmic buying accelerated as headlines spread across social media and trading desks.

“Momentum hit instantly — this is the kind of policy headline the sector has been waiting years for,”

Adding a humorous twist to the day’s narrative, social media users pointed out that Snoop Dogg was recently named honorary coach of Team USA for the 2026 Winter Olympics. With Trump now reportedly preparing to ease federal cannabis rules, many joked about the “perfect timing.”

Whether coincidence or not, cannabis stocks loved the news.

What’s Next

The policy shift would still require formal agency action and may face legal challenges, but Friday’s market reaction suggests investors are already pricing in a far more permissive regulatory environment for U.S. cannabis companies.