Cannabis Stocks Surge Following Trump’s Endorsement for Seniors

Cannabis stocks experienced a significant surge on Monday following a video posted by former President Donald Trump that promotes the use of cannabis for senior citizens. The nearly three-minute video, shared on Trump’s Truth Social platform, advocates for hemp-derived CBD as a potential solution for pain and stress relief among the elderly. This endorsement has positively impacted the stock prices of several cannabis companies, including Canopy Growth, Tilray, and Cronos Group.

The video was produced by the Commonwealth Project, an organization that supports cannabis use in senior healthcare. In the video, Trump is praised for his role in the 2018 farm bill, which legalized industrial hemp. The message emphasized the need to “educate doctors,” provide Medicare coverage for CBD products, and offer support to millions of seniors.

This recent endorsement comes amid ongoing discussions about the federal decriminalization of cannabis. Currently, under the administration of President Joe Biden, the Department of Health and Human Services has requested that the Drug Enforcement Administration (DEA) reassess the classification of cannabis. Presently, cannabis is classified as a Schedule I substance under the Controlled Substances Act, indicating it is deemed to have no accepted medical use and a high potential for abuse.

Trump had previously remained silent on the issue of cannabis reclassification until August, when he acknowledged that his administration was “looking at reclassification” and would make a determination soon. He remarked, “I’ve heard great things having to do with medical, and I’ve heard bad things having to do with just about everything else. It’s a very complicated subject.”

As of now, 40 states in the United States permit the use of medical cannabis products, while 24 states allow non-medical cannabis use. Following Trump’s video, Tilray’s stock led the rally, soaring by more than 40%. Advocates for medical cannabis argue that legalizing marijuana at a federal level would facilitate increased investment in research and broaden access for patients.

The Commonwealth Project highlights the challenges posed by cannabis’s current classification, stating, “While the DEA plans to reschedule cannabis, today it is still a Schedule I drug—a classification for the most dangerous drugs such as heroin and LSD. As a result, studying cannabis is challenging and not integrated into comprehensive medical care, depriving millions of Americans aged 65 and older of potential life-changing alternative therapies for medical ailments.”

Despite the momentum generated by Trump’s endorsement, the stance of Terrance Cole, the current DEA administrator appointed in July, on cannabis reclassification remains unclear. Critics note that Cole did not prioritize cannabis reclassification during his appointment, instead focusing on combating fentanyl distribution.

The cannabis industry continues to watch the developments closely, hoping for a shift in federal policy that could transform the landscape for both investors and patients seeking alternative treatments.