US President Donald Trump on Thursday signed an executive order to ease federal marijuana rules, which could further change decades of tough marijuana policy, UNN reports with reference to Reuters.
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Trump's order directs the Attorney General to take swift action to reclassify marijuana. If this happens, the psychoactive plant will be listed with common painkillers, ketamine, and testosterone as a less dangerous drug.
Such a decision would be one of the most significant federal changes in marijuana policy in decades. It could transform the cannabis industry, free up billions for research funding, and open doors long closed to banks and investors, the publication writes.
US Senate Democratic leader Chuck Schumer welcomed the move, while dozens of lawmakers in Trump's own Republican Party criticized the decision.
According to Trump, marijuana would still remain illegal at the federal level and subject to a number of local laws across the country. Some industry experts said that congressional action was still needed to create more stable regulation.
"We have people begging me to do this, people who have been suffering from severe pain for decades," Trump told reporters at the White House. But the US president also said that controlled substances are risky and that he is not interested in experiments.
"I don't want that, okay?" he said, adding, "I'm not going to take it. But a lot of people want it. A lot of people need it."
Senior administration officials said the main goal of the order was to increase medical research into marijuana and related products to understand their risks and potential for treatment. Medicare and Medicaid Services plan to allow some beneficiaries to use hemp-derived CBD products as early as April.
On Thursday, dozens of Republicans in the US House and Senate urged Trump not to sign the order. "Reclassifying marijuana as a Schedule III drug will send the wrong message to American children, promote drug cartels, and make our roads more dangerous," they said.
Marijuana is the most commonly used illicit drug in the world and the United States. Nearly one in five US residents use it annually, according to the US Centers for Disease Control and Prevention. Millions of Americans have been arrested for possession of the drug, even as growing businesses listed on stock exchanges sell cannabis-related products.
Prosecutors, police, and judges may soften their approach to criminal prosecution in response to growing popularity.
As noted, the US Drug Enforcement Administration (DEA) must review the recommendation to list marijuana as Schedule III under the US Controlled Substances Act and make a decision on reclassification. This issue has been stuck in the agency's bureaucratic process.
By law, marijuana is listed as Schedule I, like heroin, ecstasy, and peyote. This classification indicates a high potential for abuse and no currently accepted medical use. Schedule III drugs are considered less addictive and have legitimate medical uses.
Even with reclassification, marijuana would still be considered a controlled substance at the federal level, and its use would be subject to strict restrictions and criminal penalties.
At the local level, there is diverse legislation, from states where use and possession are fully legal to states where they are completely illegal. Since California first allowed medical marijuana use in 1996, the 30-year trend has been toward easing regulation.
Shares of cannabis-related companies rose on news from Washington but fell 3% to 12% by the close of trading on Thursday. US-listed Tilray shares fell 4.2%, Aurora Cannabis fell 3.4%, SNDL fell almost 1.5%, and Canopy Growth fell approximately 12% by the close of trading. Shares had previously risen 6-12% in the afternoon trading before reversing course.
At least two analysts said that expectations of mandatory banking services for cannabis businesses being included in the order, and then their absence, may have caused some disappointment among investors.