The US Department of Justice plans to reclassify marijuana as a less dangerous substance, easing restrictions but not fully legalising it federally.
The move aims to boost medical research, reduce tax burdens, and improve access to funding for cannabis companies.
Cannabis stocks initially surged following the announcement, reflecting optimism around industry growth and regulatory easing.
The US Department of Justice (DoJ) on Thursday said it would immediately ease restrictions on certain marijuana products and move swiftly to reclassify the drug as “less dangerous.”
This marks one of the most significant changes to the country’s drug policy in decades. However, the shift does not legalise marijuana at the federal level, though it is likely to reshape the nearly $50 billion industry, Reuters reported.
1 April 2026
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Two of the 50 US states have legalised marijuana strictly for medical use, while nearly half have approved it for recreational use, the report said.
Acting Attorney General Todd Blanche stated that the US government would fast-track efforts to reclassify marijuana as less dangerous. These measures are expected to ease challenges related to research, reduce tax burdens, and make it easier for companies to secure funding.
From Highly Restricted to Less Regulated
According to the report, state-regulated marijuana products will be moved to a less restrictive category, typically reserved for substances with low to moderate potential for abuse. Previously, such drugs were classified alongside highly addictive substances, including heroin.
The reclassified category includes drugs such as certain painkillers, ketamine, and testosterone. Marijuana products approved by the US Food and Drug Administration (FDA) will also fall under this less restrictive classification, the report added.
Trump’s Executive Order
The move follows an executive order signed by US President Donald Trump in December 2025, directing the easing of federal restrictions on marijuana. The order instructed the Attorney General to expedite the reclassification process, according to reports.
White House officials said the primary aim is to expand medical research into marijuana and related products, improving understanding of both risks and therapeutic potential within the cannabis industry.
Boost for a Billion-Dollar Industry
The policy shift is expected to accelerate growth in the cannabis sector and unlock billions of dollars in research funding in the US. Easing restrictions could benefit companies such as Canopy Growth, Tilray Brands, and Trulieve Cannabis, the report noted.
Following the announcement, shares of listed cannabis companies initially surged between 6% and 13%, before reversing gains as investors assessed the scope and implications of the move.
