Key insights and market outlook
US President Donald Trump has signed an executive order directing the relaxation of federal marijuana regulations, marking a significant shift in drug policy. The move instructs the Attorney General to reclassify marijuana, potentially placing it alongside substances like ketamine and testosterone in terms of regulatory control. This decision has been welcomed by Democratic leaders while facing criticism from some Republican lawmakers.
In a landmark decision, US President Donald Trump has signed an executive order aimed at relaxing federal regulations on marijuana. The move, announced on December 18, 2025, represents one of the most significant changes to federal marijuana policy in recent decades.
The order instructs the Attorney General to promptly reclassify marijuana, potentially moving it to a category alongside common painkillers, ketamine, and testosterone. This reclassification would acknowledge marijuana as a substance with potentially lesser risks compared to its current scheduling.
This policy shift is expected to have far-reaching consequences for the marijuana industry. A reclassification could unlock billions of dollars in research funding and open up new opportunities for banking and investment in the sector. The move is likely to reshape the landscape of the marijuana industry, potentially leading to expanded business operations and increased legitimacy.
The decision has received mixed political reactions. Democratic Senate leader Chuck Schumer has welcomed the move, viewing it as a positive step forward in drug policy reform. Conversely, numerous Republican lawmakers from Trump's own party have expressed strong criticism of the decision, highlighting the ongoing debate surrounding marijuana legalization.
Marijuana Regulation Change
Federal Drug Policy Shift