Trump may significantly relax marijuana restrictions, causing marijuana stocks to soar.

The White House in the United States is preparing to significantly relax restrictions on the "drug" marijuana. On December 12th, according to informed sources cited by the media, U.S. President Trump is expected to sign an executive order on Monday to reclassify marijuana as a more loosely regulated drug. This policy will allow marijuana businesses to apply different tax rules and encourage investment in the industry. After the news came out, marijuana stocks surged significantly during Friday's trading session. Marijuana producer Tilray Brands surged 44%, Canopy Growth skyrocketed 53%, and the Amplify Seymour Cannabis ETF rose over 54%, marking the best single-day performance in the fund's history. Major adjustments to the regulatory framework will take place. It was reported on Thursday for the first time that Trump is expected to direct federal agencies to reclassify marijuana from Schedule I to Schedule III, a more loosely regulated category. The potential reclassification will move marijuana from the strictest control category where drugs are placed to the level of lower-risk drugs like steroids and opioids such as Tylenol. It is expected to be implemented early next year. Trump had proposed changing the classification of marijuana as early as August of last year. Ed Groshans of Compass Point, a medium-sized investment bank, wrote in a report to clients on Friday, "In our assessment, it is not a matter of whether Trump will rearrange the classification of marijuana, but a matter of when." Groshans stated that the changes reported would be "positive" for the marijuana industry as it would allow banks to provide services to the industry. He expects that if Trump orders the reclassification of marijuana, the DEA will determine the proposed rules for reclassification by the summer of next year. Senior research analyst Bill Kirk of Roth stated that he is also monitoring whether the Supreme Court will decide next week to hear a case on state regulations versus federal prohibition of marijuana. If there is a ruling favorable to the industry, it could accelerate the regulatory timetable. Tilray CEO Irwin Simon told the media, "I am more optimistic than ever." After a brief frenzy during the pandemic, marijuana stocks have struggled. Tilray's stock is currently trading slightly above $10, compared to its peak of over $2,140 (adjusted for stock splits) in September 2018. This article is a reprint from Wall Street Vision, by author Yi Long Bao; translated and edited by GMTEight.