DEA to Reclassify Marijuana as Schedule III, Boosting Stocks After 2022 Review

Apr 30, 2024, 07:08 PM

The U.S. Drug Enforcement Administration (DEA) is set to reclassify marijuana from a Schedule I to a Schedule III controlled substance, marking a significant shift in federal drug policy. This move, directed by President Joe Biden's administration following his call for a review in October 2022, acknowledges the medical uses of cannabis and its lower potential for abuse compared to more dangerous drugs. The proposal, pending approval from the White House Office of Management and Budget, has sparked a notable rally in cannabis-related stocks, aligning with the legalization status in 24 states. Once approved, the DEA plans to take public comments on this decision. Schedule III includes drugs like Tylenol with codeine, reflecting the reduced severity of marijuana's classification.