TLDR
- Trump posted on Truth Social supporting CBD for senior healthcare, calling it revolutionary for disease prevention
- Major cannabis stocks jumped 13-20% in premarket trading following the endorsement
- Cannabis ETF MSOS surged 25% and is heading for record 70% quarterly gains
- President previously indicated plans to reclassify marijuana from Schedule I to Schedule III
- Reclassification would eliminate Section 280E tax penalties affecting cannabis businesses
Cannabis stocks posted major gains Monday morning after President Donald Trump endorsed cannabidiol (CBD) products for senior healthcare on his Truth Social platform. The presidential backing sparked the biggest rally in marijuana stocks seen this quarter.
Trump’s Sunday post described hemp-derived CBD as potentially revolutionary for senior healthcare. He stated the compound could help reduce disease progression and serve as an alternative to traditional prescription medications for elderly patients.
The endorsement represents Trump’s strongest public support for cannabis-related products since returning to office. Last month, the president indicated his administration was reviewing marijuana’s federal classification status.
Stock Market Response
Cannabis companies saw immediate double-digit percentage gains in premarket trading. Canopy Growth Corporation jumped nearly 20% before market open, while Tilray Brands posted similar gains of approximately 20%.
Other major players also benefited from the news. Cronos Group shares rose 9.5% in early trading, and Aurora Cannabis gained 13.7% following Trump’s statements.
The AdvisorShares Pure U.S. Cannabis ETF experienced the largest movement, surging 25.2% in premarket activity. The fund is now tracking toward its biggest quarterly gain on record at roughly 70%.
Ben Laidler from Bradesco BBI noted that presidential support provides substantial momentum for the struggling cannabis sector. The industry has faced regulatory uncertainty for years.
Cannabis stocks remain highly volatile and sensitive to political developments. Individual company performance has varied widely throughout 2025, with some stocks losing significant value while others posted gains exceeding 30%.
Regulatory Landscape
Current federal law classifies marijuana as a Schedule I controlled substance, indicating high abuse potential and no accepted medical use. This classification creates tax and banking challenges for cannabis businesses.
The Biden administration previously directed health officials to review marijuana scheduling. The Department of Health and Human Services recommended moving cannabis to Schedule III, which covers drugs with moderate dependence potential.
Trump’s first presidential term included some cannabis policy changes through the Agriculture Improvement Act. This legislation eased restrictions around commercial hemp and CBD products.
Industry Impact
Reclassification would eliminate Section 280E tax provisions that deny standard business deductions to cannabis companies. This change could enable more marijuana businesses to access traditional banking services and list on major stock exchanges.
Currently, nearly 40 states have legalized marijuana in some form, creating conflicts between state and federal law. Federal reclassification would help bridge this regulatory gap.
Cannabis trading volumes have remained elevated due to ongoing policy uncertainty. Institutional investors have largely avoided the sector due to federal restrictions and compliance concerns.
Trump’s latest comments suggest potential policy shifts ahead. The president has not provided specific timelines for any regulatory changes but previously hinted at reclassification plans during his current term.
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