Nathan Dean, Bloomberg Intelligence Senior US Policy Analyst says he thinks reclassification of marijuana is coming, but it’s not clear if the government plans to restart the process or move straight to a final rule.
The US Justice Department is expected to reclassify marijuana into a less restrictive federal category as soon as Wednesday, according to a person familiar with the matter.
The move would shift cannabis from being labeled as Schedule I, the government’s most restrictive class, alongside substances such as heroin and LSD, to Schedule III, according to a person familiar. The latter classification is reserved for drugs with accepted medical uses and lower abuse potential.
The White House did not immediately respond to a Bloomberg News request for comment. While the move wouldn’t legalize marijuana nationwide, the change could remove burdensome taxes that companies currently face for selling marijuana in states where it’s legal, according to the person familiar. It could also open the door for more clinical research.
Under the current laws governing the sale of Schedule I substances, any business selling those products is taxed prior to removing operating expenses. For example, Green Thumb Industries Inc, one of the largest multi-state cannabis companies in the country, reported its tax rate was 56% in 2025, versus the typical US corporate tax rate of 21% that year.
The US Drug Enforcement Administration moved to reclassify marijuana to the lesser designation nearly two years ago, and President Donald Trump signed an executive order on the reclassification in December in part to increase medical research on the substance.
On Saturday, President Trump bemoaned the lack of progress on rescheduling when he signed an executive order to expedite research and access to psychedelics.
“Will you get the rescheduling done, please?” Trump said, pointing to the government officials and civilians assembled behind him. “They’re slow walking me on rescheduling,” he said.
Axios earlier reported that the Trump Administration was moving to reclassify marijuana.
Shares of cannabis stocks surged on the news, triggering volatility halts on Tilray Brands Inc. as well as the AdvisorShares Pure US Cannabis ETF, which soared nearly 28% after it resumed trading.
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