(Reuters) -U.S. President Donald Trump's administration is looking to reclassify marijuana as a less dangerous drug, a shift that could ease criminal penalties and reshape the pot industry by lowering tax burdens and making it easier for firms to secure funding.
Trump said on Monday a decision could come within the next couple of weeks.
U.S.-listed cannabis-linked stocks rose in pre-market trading on Tuesday, led by a 13% jump in Canopy Growth. Organigram Global, SNDL, Aurora Cannabis and Tilray Brands gained between 3% and 12%.
WHAT DOES RECLASSIFYING ENTAIL?
Under the Controlled Substances Act, marijuana is listed as a Schedule I substance, meaning it has a high potential for abuse and no current accepted medical use.
Reclassifying marijuana as a less dangerous drug could unlock banking access for pot producers, attract institutional investors, reduce tax burden and spur mergers and acquisitions.
Securing funding remains one of the biggest challenges for cannabis producers, as federal restrictions keep most banks and institutional investors out of the sector, forcing pot producers to turn to costly loans or alternative lenders.