The U.S. Department of Justice announced an immediate easing of restrictions on some marijuana products and the start of a procedure to reclassify the substance as less dangerous. This was reported by Reuters, writes UNN.
Details
The decision does not entail full federal legalization of marijuana, but it could significantly impact the industry, which is estimated to be worth $47 billion.
Medical marijuana products, which are regulated at the state level, are planned to be moved from the category of most dangerous substances to a less restrictive group. This group includes drugs with a low or moderate risk of abuse, including some painkillers and hormonal agents.
Biden administration seeks to reclassify marijuana as a less dangerous drug - WSJ01.05.24, 08:39
This category will also include cannabis-based drugs approved by the U.S. Food and Drug Administration.
Acting Attorney General Todd Blanche stated that the government will accelerate broader reform to reduce the danger level of cannabis.
This change will allow for expanded research into the safety and efficacy of the substance and provide doctors with more reliable information.
Market implications
The changes are expected to lower barriers to scientific research, simplify access to funding, and reduce the tax burden for companies in the industry. Following the announcement of the decision, shares of cannabis producers rose by 6-13%, although they partially corrected later.
The decision was made after U.S. President Donald Trump's directive, issued in December, to review marijuana policy.
Currently, most U.S. states already allow the use of cannabis for medical purposes, and almost half also for recreational purposes.
Trump signs executive order to ease marijuana rules in US19.12.25, 09:25