The U.S. Department of Justice has announced plans to ease restrictions on certain marijuana products, signaling a major policy shift that could reshape the country’s multi-billion-dollar cannabis industry.
The move includes steps to reclassify marijuana from a highly restricted category to a less severe classification, marking one of the most significant changes in U.S. drug policy in decades.
Although the decision does not legalize marijuana nationwide, it is expected to reduce regulatory barriers that have long constrained the industry at the federal level.
Under the new framework, state-approved medical marijuana products would be moved from the most restrictive drug category—currently shared with substances like heroin—to a classification with lower abuse risk.
The policy change also applies to marijuana-based products approved by the U.S. Food and Drug Administration, placing them alongside drugs with moderate medical use and controlled risk.
Acting Attorney General Todd Blanche confirmed that authorities will fast-track broader efforts to review the legal status of cannabis across all uses.
He noted that the reclassification would expand opportunities for scientific research, improve patient care, and provide healthcare professionals with more reliable data.
The policy direction follows an executive order issued by Donald Trump in December, directing federal agencies to revise marijuana regulations.
The shift is expected to benefit major cannabis companies such as Canopy Growth, Tilray Brands, and Trulieve Cannabis, which operate in both medical and consumer markets.
Following the announcement, cannabis-related stocks initially surged before stabilizing as investors assessed the scope of the reforms.
Industry leaders have welcomed the development. Irwin Simon described the move as a turning point, saying it aligns federal policy with scientific evidence and patient needs.
Currently, marijuana is classified as a Schedule I substance in the United States, a designation reserved for drugs considered to have high abuse potential and no accepted medical use.
However, this classification has faced growing criticism, especially as individual states continue to adopt more permissive laws.
Data from the Congressional Research Service shows that dozens of states have legalized marijuana for medical or recreational use, while only a few still prohibit it entirely.
The U.S. cannabis market is projected to exceed $47 billion in legal sales by 2026, according to industry analysts.
Meanwhile, federal health programs have also begun adapting to the evolving landscape. The Centers for Medicare and Medicaid Services recently allowed limited use of hemp-derived products, including CBD, under medical supervision.
Despite the shift, opposition remains. Critics argue that loosening restrictions could lead to increased use among minors, workplace safety concerns, and public health risks.
Republican Senator Tom Cotton warned that modern marijuana products are more potent than in previous decades and could contribute to mental health issues and accidents.
The Justice Department has announced plans to begin formal proceedings on June 29 to gather expert input on the proposed reclassification.
The outcome could further redefine the legal and economic landscape of marijuana in the United States.
