The U.S. Department of Justice took bold action last week by reclassifying FDA-approved marijuana products and state-licensed medical cannabis from Schedule I to Schedule III.
Officials made the change on Apr. 23 to recognize medical value, ease research barriers and expand patient access while keeping tight controls on illicit trafficking. The Trump administration drove the move, framing it as a step to deliver better treatment options.
Cannabis stocks reacted with sharp swings. Akanda Corp (NASDAQ: AKAN) (FRA: Y232) shares exploded more than 200 per cent in one trading session as investors cheered the policy shift. Tilray Brands Inc (TSE: TLRY) (NASDAQ: TLRY) (FRA: 2HQ) and Canopy Growth Corp (TSE: WEED) (NASDAQ: CGC) (FRA: 11L) also climbed strongly at the open. Traders bet on tax relief and smoother federal rules.
However, many stocks reversed course later that day. Tilray and Canopy Growth dropped several per cent later in the session and the broader sector pulled back as investors realized the narrow scope.
The latest rescheduling move covers only medical programs, leaving adult-use markets in a state of uncertainty.
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Timeline for further restriction loosening
This medical-focused change takes effect right away. State-licensed operators can now register more easily with the DEA and gain clearer paths for research.
Full relief, however, could take longer. The DEA plans an expedited hearing on Jun. 29 to consider broader Schedule III placement for all marijuana.
Controversy quickly erupted around the decision. Some Republican lawmakers and anti-cannabis advocates slammed it as a tax giveaway to big industry players. Critics argued it confuses public health messages and ignores potential risks.
Industry supporters, by contrast, called the move the biggest federal cannabis advance in decades and praised it for treating cannabis as legitimate medicine.
Future outlook for industry investors
Rescheduling brings modest tax wins that investors must weigh carefully. Medical businesses can now deduct ordinary expenses under the old 280E rules, which boosts cash flow and balance sheets for compliant operators.
Adult-use companies still face the full tax burden, so relief remains limited for them. Even so, the shift clears some financing hurdles and signals momentum for further reform.
Tilray Brands appears particularly well placed because of its global cultivation scale and pharmaceutical-grade know-how. It plans to expand into the U.S. medical market as a key supplier. Canopy Growth also gains renewed optimism with its strong fundamentals.
“Rescheduling unlocks the potential for accelerated clinical research, greater consistency and quality and broader access to safe, regulated treatments,” said Tilray CEO Irwin Simon, “helping further establish cannabis as a credible therapeutic option within modern healthcare.”
Australian operators Zelira Therapeutics Ltd (OTCMKTS: ZLDAF) (FRA: G1G) (ASX: ZLD) and Elixinol Wellness Ltd (OTCMKTS: ELLXF) (FRA: E8M) (ASX: EXL) stand out as bright prospects too. Both hold U.S. clinical and CBD exposure that could benefit from reduced federal strife and easier capital access.
Patient-focused firms with clean balance sheets and disciplined operations hold the strongest edge. While full legalisation remains uncertain, this rescheduling helps light a path for long-term industry gains if Congress and regulators keep the momentum going.
DOJ RESCHEDULES CANNABIS!
This once in a century event legitimizes Cannabis for the 21st century as Alcohol industry was legitimized post prohibition (1933).
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For lazy investors: $MSOS $MJ $CNBS $YOLO ETFs.
PER ASPERA AD ASTRA! pic.twitter.com/vZHoLsvpay— Adastra (@numbersnarrati) April 23, 2026
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