US President Joe Biden confirmed on Thursday that the Justice Department is officially moving toward reclassifying cannabis as a lower-risk drug.
The Justice Department’s proposed rule will soon be posted which will be followed by a 60-day public comment period before the rule is potentially finalized, it was confirmed.
Under the proposal, cannabis would be rescheduled from Schedule I, where it sits alongside drugs like heroin, to Schedule III, which would acknowledge its medical benefits for the first time at a federal level and remove tax burdens for cannabis firms.
In a video message posted on the social media platform X, President Biden hailed the move as “monumental.”
“Today my administration took a major step to reclassify marijuana from a Schedule I to a Schedule III drug,” Biden said in the video. “It’s an important move towards reversing longstanding inequities.”
“Far too many lives have been upended because of a failed approach to marijuana and I’m committed to righting those wrongs. You have my word on it.”
Too many lives have been upended because of our failed approach to marijuana.
So today, the @TheJusticeDept is taking the next step to reclassify marijuana from a Schedule I to a Schedule III drug under federal law.
Here's what that means: pic.twitter.com/TMztSyyFYm
— President Biden (@POTUS) May 16, 2024
Cannabis stocks moved higher on the news.
The AdvisorShares Pure US Cannabis ETF, which tracks US cannabis companies, added 9.3% at $10.49.
Meanwhile, the AdvisorShares Pure Cannabis ETF, which offers investor exposure to global cannabis businesses, added 5.3% at $4.40.