Trump Endorsement of CBD Sparks Surge in Cannabis Stocks
On Sunday, September 28, 2025, President Donald Trump posted a video on social media endorsing cannabidiol (CBD) as a potential breakthrough in senior healthcare. He suggested that CBD could reduce disease progression and serve as an alternative to prescription medications. This endorsement, coupled with his administration’s earlier stance in August to reclassify marijuana, has sent cannabis stocks soaring. Major companies like Tilray Brands (TLRY), Canopy Growth Corporation (CGC), Cronos Group Inc (CRON), and Aurora Cannabis Inc (ACB) saw significant gains in premarket trading on Monday, September 29, 2025. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) also jumped 20.6%, putting it on course for a record quarterly gain of about 70%.
Regulatory Momentum: A New Era for Cannabis?
President Trump’s endorsement of CBD aligns with his administration’s earlier proposal to reclassify cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act. This move would remove the IRS’s 280E rule, which currently bars cannabis businesses from deducting standard operating expenses, according to an ExtractLabs report. Reclassification could unlock billions in reinvestment capital and banking access, effectively reducing the financial burden on companies like Tilray Brands and Canopy Growth. The former president has also reiterated support for the SAFE Banking Act, a legislative proposal that would allow cannabis businesses to access traditional financial services.
Market Reaction: A Surge in Cannabis Stocks
The market responded positively to President Trump’s endorsement and the potential for regulatory changes. Shares of major cannabis companies experienced significant price movements in early trading. Tilray Brands (NASDAQ: TLRYY) shares jumped 18%, while Cronos (NASDAQ: CRON) gained 10%. Canopy Growth (NASDAQ: CGC) posted the largest increase among the group, rising 19%. The Amplify Alternative Harvest ETF, which tracks the performance of companies in the cannabis industry, also moved higher by 13% in premarket trading.
Investor Sentiment: Optimism Amid Uncertainty
Investors are optimistic about the potential for regulatory changes that could benefit the cannabis industry. The endorsement of CBD and the proposal to reclassify cannabis have reignited hopes for federal reforms that could ease legal restrictions and criminal penalties. However, uncertainties remain, including the path to rescheduling and potential opposition from certain lawmakers. Despite these challenges, the recent developments have provided a boost to investor confidence in the cannabis sector.
Conclusion
President Trump’s endorsement of CBD and the proposal to reclassify cannabis represent significant developments for the cannabis industry. These actions have sparked a surge in cannabis stocks, reflecting investor optimism about potential regulatory changes. While uncertainties remain, the recent developments signal a potential turning point for the cannabis sector, with the possibility of increased access to capital markets and reduced financial burdens for cannabis businesses. Investors will be closely monitoring the progress of federal reforms and the industry’s ability to navigate the evolving regulatory landscape.
FAQS:
Cannabis stocks are rising due to President Trump’s endorsement of CBD for senior healthcare and potential federal reclassification, easing legal restrictions, and boosting investor confidence.
Curaleaf Holdings is among the largest cannabis companies by market capitalization, with a significant presence in the U.S. and European cannabis markets.
Investing in cannabis stocks can be promising due to growing market potential, but it’s important to consider regulatory uncertainties and market volatility before making investment decisions.
Yes, many cannabis companies are publicly traded, primarily on over-the-counter (OTC) markets, with a few listed on major exchanges like the Toronto Stock Exchange.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.
