The Drug Enforcement Agency (DEA) is currently considering whether to reclassify marijuana into a less hazardous category, and as a result, cannabis stocks are experiencing a significant surge.
The U.S. Department of Health and Human Services (HHS) recently sent a letter to the DEA requesting that cannabis be classified as a Schedule III drug, rather than its current classification as a Schedule I drug. This information was obtained from a letter dated Tuesday and viewed by Bloomberg News. Notable substances in Schedule I include Ecstasy and heroin, while Schedule III includes drugs such as Tylenol with Codeine.
In response to this news, shares of cannabis companies like Tilray Brands (TLRY) and Curaleaf Holdings (CURLF) have surged by more than 20%. Additionally, popular exchange-traded funds such as AdvisorShares Pure US Cannabis ETF (MSOS), one of the largest cannabis ETFs, experienced a 32% increase at one point on Wednesday. The Global X Cannabis ETF (POTX) also witnessed an 11% jump.
It is clear that the potential reclassification of marijuana has had a significant impact on the growth of cannabis stocks. Investors and industry experts alike are eagerly awaiting further updates on this matter.