U.S. Government to Loosen Marijuana Restrictions in Major Drug Policy Shift

In a landmark shift, the U.S. Department of Justice announced on Thursday a plan to ease restrictions on certain marijuana products, aiming to reclassify the drug as less dangerous. This initiative marks one of the most significant changes in U.S. drug policy in recent memory.

While the reclassification stops short of full-scale federal legalization, it is likely to have a transformative effect on the $47 billion cannabis industry. All U.S. states, except two, have legalized cannabis to varying degrees, yet the industry still faces federal hurdles. The move will allow state-regulated medical marijuana products to be reclassified from the same group as highly addictive drugs to a less restrictive category.

Experts believe this policy shift, following executive directives, will not only encourage research into cannabis but also ease the tax burden and enhance funding opportunities for cannabis firms. The U.S.-listed stocks of several cannabis companies, including Tilray Brands and Canopy Growth, saw significant gains following the announcement.