TLDR
- FDA announces it will not pursue enforcement actions against certain hemp-based oral CBD products
- Marijuana sector posts best weekly performance of 2025, with benchmark ETF climbing 16%
- Major players Tilray, Canopy Growth, and Curaleaf record significant Thursday gains
- Policy shift comes after President Trump’s executive order moving marijuana to Schedule III in December
- Industry experts warn the changes remain limited and fall short of comprehensive regulation
Major marijuana companies experienced their most impressive rally of the year following the Food and Drug Administration’s announcement of a more lenient approach toward CBD products. The development propelled leading cannabis stocks significantly higher and positioned the industry for its strongest weekly showing in months.
In a letter released Wednesday, FDA Commissioner Marty Makary outlined that the agency would refrain from pursuing enforcement of specific sections of the Federal Food, Drug, and Cosmetic Act against hemp-based oral products solely based on their CBD content. This guidance covers items sold as dietary supplements as well as products dispensed to patients through physician oversight.
CBD, short for cannabidiol, is a non-intoxicating component derived from cannabis plants. Consumers utilize it for various health and wellness applications, and it appears in numerous retail products.
The upward movement in marijuana stocks actually commenced Tuesday, preceding the official announcement when the White House and FDA launched the first of four scheduled discussions with industry representatives regarding CBD regulatory compliance and enforcement strategies.
This FDA policy adjustment follows President Trump’s December executive directive, which reclassified marijuana from Schedule I to Schedule III within federal drug classifications. That same directive instructed the FDA, National Institutes of Health, and Centers for Medicare and Medicaid Services to explore methods for broadening CBD availability for therapeutic applications.
Marijuana stocks experienced a temporary spike following the December directive before retreating. The industry continues to struggle with challenges including limited banking services, exchange listing obstacles, and cross-border trade restrictions stemming from federal limitations.
Tilray Brands
Tilray emerged as one of this week’s standout performers. The company’s shares climbed 6.7% during Thursday’s trading session and ranked among the sector’s highest in terms of dollar volume traded. The organization conducts research, cultivation, processing, and distribution of medical marijuana products spanning numerous nations such as Canada, Germany, Australia, and Argentina.
Canopy Growth
Canopy Growth advanced 2.6% on Thursday. This enterprise markets cannabis and hemp offerings for both recreational consumers and medical patients throughout the United States, Canada, Germany, and additional global territories. The company also operates its Storz and Bickel division, which manufactures cannabis vaporization devices. Canopy joined Tilray as one of the week’s most actively exchanged marijuana stocks.
Canopy Growth Corporation, CGC
Curaleaf Holdings
Curaleaf delivered the most impressive Thursday performance among prominent cannabis companies, surging 8.4%. This organization concentrates its operations within the United States cannabis market. Investment professionals have closely monitored its shares as they await potential federal policy modifications that might enable interstate cannabis commerce for industry participants.
The AdvisorShares Pure US Cannabis exchange-traded fund increased 4.6% Thursday and accumulated 16% gains across the week, tracking toward its strongest weekly results since December.
An industry specialist observed that the policy remains “narrowly scoped” and doesn’t establish a comprehensive framework for the wider cannabis marketplace, urging Congressional action for more substantial progress.
The FDA convened its initial stakeholder discussion on CBD regulations Wednesday, with three additional meetings planned in the ongoing series.
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