US set to move to reclassify marijuana as early as Wednesday, Axios reports

WASHINGTON — The United States administration is expected to move ​to reclassify marijuana as soon as Wednesday, Axios reported, citing an official familiar with the matter, ‌sending U.S. stocks of cannabis-related companies higher.

The decision to reclassify marijuana would ⁠represent one of the ​most significant federal changes to ⁠marijuana policy in decades, removing barriers to researching ‌the drug's potential ‌use cases.

In December, President Donald Trump signed an ⁠executive order directing the ⁠loosening of federal regulations on marijuana, paving the way for reclassification.

The move could lead to the psychoactive plant being listed alongside common painkillers, ketamine and testosterone as a less dangerous drug.

It would also likely ‌reshape the cannabis industry by lowering ​tax burdens and making it easier for companies to secure funding, benefiting firms like Canopy Growth, Tilray Brands and Trulieve Cannabis.

U.S.-listed shares of Canopy surged 23% while Tilray rose 15% following the Axios report.

The Justice Department and its Drug Enforcement Administration did not immediately ​respond to requests for a comment. The decision to reclassify ‌marijuana rests with the ‌DEA.

Marijuana ⁠is the most widely used illicit drug in the world and in the United States. Nearly one in five U.S. residents uses it a year, according to the U.S. Centers for Disease Control and Prevention, Reuters reported in December.

Contributing: Padmanabhan Ananthan

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