Hold onto your hats, folks—President Donald Trump is shaking up the cannabis world with talk of an executive order that could loosen federal grip on marijuana.

Reports of a potential reclassification of marijuana from a tightly controlled Schedule I substance to a less restrictive Schedule III category surfaced last Friday, sparking a massive rally in cannabis stocks, only to see a sharp decline by Monday despite Trump's confirmation of considering such a move, CNBC reported. 

Let’s rewind to Friday when whispers emerged that Trump might direct federal agencies to rethink marijuana’s status, placing it alongside less dangerous substances like steroids rather than heroin.

Friday's Cannabis Stock Surge Stuns Market

This news triggered an unprecedented surge in the cannabis sector, with the Amplify Seymour Cannabis ETF (CNBS) recording its best day ever, soaring over 50% and finally nudging into positive territory for the year.

Industry insiders have long awaited this shift, hoping it could break a four-year losing streak for many cannabis investments and open doors for more banking and investor support.

Optimism was palpable, as the potential for expanded research and financial backing seemed within reach if this reclassification comes to pass.

Trump Confirms Consideration of Marijuana Reform

Fast forward to Monday, when Trump himself fanned the flames, stating, “We are considering that,” when pressed about an executive order to reschedule marijuana.

Let’s unpack that—Trump’s words hint at a pragmatic shift, not some radical agenda, but a move that could unshackle legitimate research from outdated federal overreach.

He doubled down, noting, “A lot of people want to see the reclassification, because it leads to tremendous amounts of research that can’t be done unless you reclassify. So we are looking at that very strongly.”

Market Reacts with Profit-Taking Decline

Despite this bombshell, the market took a breather on Monday, with the Amplify Seymour fund slipping nearly 7% by close as investors cashed in on Friday’s gains.

Weed producers like Tilray and Canopy Growth felt the sting too, dropping 10% and 4.6% respectively, while retailer SNDL plummeted over 13% in share value.

Clearly, the initial euphoria gave way to a sobering reality check—hope is one thing, but hard policy is another.

Industry Optimism Clings to Potential Change

Yet, there’s still a buzz in the cannabis corner, with many believing the momentum for reclassification might finally stick, especially with Trump’s public musings on the matter since August.

A source close to the issue suggested to CNBC that an executive order could drop as early as Monday, though the wait continues for concrete action.

While progressive policies often push for unchecked liberalization, Trump’s approach here seems to balance deregulation with a nod to science—a rare middle ground in today’s polarized climate. Let’s hope this isn’t just smoke and mirrors, but a genuine step toward sensible reform that respects both law and innovation.