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Market themes↓ cooling

Pot stocks chase rescheduling headlines

Cannabis stocks jump whenever Washington moves to ease marijuana rules, then give back the gains when the details arrive.

Market value moved since Aug 2025
+$765Mwinners

Combined change in market value of the companies the theme hits directly. Ripple effects aren't counted, and not every dollar of each move is down to this theme.

What's happening

Federal law has put marijuana in Schedule I, the strictest category, since 1970. That drives taxes: rule 280E bars anyone selling a Schedule I or II drug from deducting rent, wages and other normal costs, so U.S. cannabis companies are taxed on gross profit. The current push began Aug. 8, 2025, when the Wall Street Journal reported President Trump was considering a change. He ordered it on Dec. 18, 2025. On April 23, 2026, the Justice Department moved FDA-approved drugs and state-licensed medical marijuana to Schedule III, which ends 280E for those sales. Recreational marijuana stays in Schedule I, so the order does not legalize recreational sales or create a national market. A DEA hearing on moving all marijuana took testimony in June and July. On Sept. 29 a judge paused it so opponents could argue for adding a government audit report to the record.

Who wins, who pays, and why

The tax relief goes to U.S. operators with medical sales; recreational sales still fall under 280E. Trulieve's tax bill fell to $22.0 million last quarter from $54.7 million a year earlier. On June 10 it became the first U.S. cannabis company on the NYSE, after walling off its recreational stores, because exchanges now accept medical-only operators. Curaleaf did a 1-for-3 reverse split in June to meet U.S. exchange price rules. Tilray and Canopy Growth don't sell THC in the U.S., so they get no tax break. They rise anyway because most U.S. operators trade over the counter, which makes the Nasdaq names the easiest pot stocks to buy. SNDL is closer to the benefit: its lending venture took majority economic ownership of Parallel, a U.S. medical operator, in July.

Where it stands A DEA judge paused the hearing on moving all marijuana to Schedule III on Sept. 29; responses are due Oct. 13. Tilray closed near its 52-week low Oct. 9.

Who wins, who loses

Tends to rise
  • Tilray BrandsTLRY
    −$570M market value since Aug 2025

    Rose 41% on Aug. 11, 2025, and 14% on April 22, 2026, then fell 12% the next day; its U.S. business is beer and hemp.

    Read the breakdown →
  • Canopy GrowthCGC
    −$266M market value since Aug 2025

    Rose 26% on Aug. 11, 2025, and 21% on April 22, 2026, then fell 12% the next day; it sells no THC in the U.S.

    Read the breakdown →
  • SNDLSNDL
    −$105M market value since Aug 2025

    Mostly Canadian liquor and cannabis stores, but its venture took majority economic ownership of U.S. medical operator Parallel in July; down 27% since August 2025.

    Read the breakdown →
  • Trulieve CannabisTRLVnot in the 100
    +$951M market value since Aug 2025

    Medical-only since June; listed on the NYSE June 10, and its quarterly tax bill fell to $22.0 million from $54.7 million.

  • Curaleaf HoldingsCURLFnot in the 100
    +$866M market value since Aug 2025

    Rose 35% on Aug. 11, 2025, then fell 23% the day medical marijuana moved; did a 1-for-3 reverse split for U.S. exchange rules.

  • Green Thumb IndustriesGTBIFnot in the 100
    −$111M market value since Aug 2025

    Bought back 13.4 million shares in the first half of 2026, yet fell 13% on Sept. 30 and trades 7% below August 2025.

  • AdvisorShares Pure US Cannabis ETFMSOSnot in the 100

    A fund of U.S. operators; rose 26% on Aug. 11, 2025, and 19% on April 22, 2026, then fell 17% the next day.

Tends to fall

None identified yet.

    When it moved markets

    1. Week of Sep 28A DEA judge paused the hearing on moving all marijuana to Schedule III on Sept. 29. Tilray fell 12.6% for the week, SNDL 11.4% and the MSOS fund 13.4%.
    2. Week of Jun 8Trulieve began trading on the NYSE June 10, the first U.S. cannabis company there, then fell 11.8% for the week; the MSOS fund fell 7.9%.

    Sources

    1. 1Schedules of Controlled Substances: Rescheduling of Food and Drug Administration Approved Products Containing Marijuana From Schedule I to Schedule III; Corresponding Change to Permit Requirements · Drug Enforcement Administration via Federal Register, 2026-04-28
    2. 2Schedules of Controlled Substances: Rescheduling of Marijuana (notice of hearing) · Drug Enforcement Administration via Federal Register, 2026-04-28
    3. 3Increasing Medical Marijuana and Cannabidiol Research (Executive Order 14370) · Executive Office of the President via Federal Register, 2025-12-23
    4. 4DOJ immediately reschedules state-licensed medical cannabis to Schedule III and restarts the clock on broader rescheduling · Foley Hoag, 2026-04-23
    5. 5The cannabis rescheduling is causing celebration, and confusion, as marijuana stocks sell off · MarketWatch via Tiger Brokers, 2026-04-23
    6. 6DEA judge pauses marijuana rescheduling hearing as opponents highlight government report detailing 'gaps' in federal processes · Marijuana Moment, 2026-09-29
    7. 7Pot stocks climb on report Trump considers reclassifying marijuana as less dangerous · Reuters via TradingView, 2025-08-11
    8. 8Trump says he may reclassify cannabis as less dangerous drug · Al Jazeera, 2025-08-12
    9. 9Trump signs order to ease marijuana regulations, sparking industry hopes · Reuters via KSL, 2025-12-18
    10. 10Trulieve reports second quarter 2026 results · Trulieve via Finviz, 2026-08-07
    11. 11Trulieve Cannabis Corp. Form 10-Q for the quarter ended June 30, 2026 · SEC EDGAR, 2026-08-07
    12. 12Curaleaf Holdings, Inc. Form 10-Q for the quarter ended June 30, 2026 · SEC EDGAR, 2026-08-05
    13. 13Curaleaf Holdings, Inc. material change report: 1-for-3 reverse stock split (Form 6-K) · SEC EDGAR, 2026-06-05
    14. 14Green Thumb Industries Inc. Form 10-Q for the quarter ended June 30, 2026 · SEC EDGAR, 2026-08-05
    15. 15Florida-based Trulieve set to become first cannabis company listed on the NYSE · Florida Phoenix via WLRN, 2026-06-10
    16. 16SNDL announces completion of Parallel asset acquisition and positions for Nasdaq-consolidated U.S. medical cannabis operations · SNDL via MarketScreener, 2026-07-27
    17. 17Trulieve Cannabis Corp. (TRLV) historical prices · Yahoo Finance, 2026-10-09
    18. 18Curaleaf Holdings (CURLF) historical prices · Yahoo Finance, 2026-10-09
    19. 19Green Thumb Industries (GTBIF) historical prices · Yahoo Finance, 2026-10-09
    20. 20Tilray Brands, Inc. Form 10-K for the fiscal year ended May 31, 2026 · SEC EDGAR, 2026-07-28
    21. 21AdvisorShares Pure US Cannabis ETF (MSOS) historical prices · Yahoo Finance, 2026-10-09