Cannabis Stocks Retreat On New Rescheduling Order Developments: What's Going On?

The Biden Administration’s plan to reclassify cannabis as a Schedule III drug may be losing momentum following new reports suggesting the administrator of the U.S. Drug Enforcement Administration (DEA) failed to sign the rescheduling order.

What Happened: Several reports from last week indicated that the DEA would move to reclassify marijuana as a less dangerous drug. Although the proposal wouldn’t legalize cannabis for recreational use, it acknowledged that cannabis has medical benefits and places it in a category that recognizes it as having less potential for abuse.

The DEA was expected to move forward with its plans this week to remove cannabis as a Schedule 1 drug, where it currently sits alongside heroin and LSD, but new reports suggest the proposal has stalled.

According to an X post on Monday from Newsweek’s Kevin Sabet, DEA Administrator Anne Milgram failed to sign the rescheduling order.

“BIG: I can now say with full confidence that the Administrator of DEA, Anne Milgram, did NOT sign the rescheduling order, breaking with five decades of precedent and established law and regulations,” Sabet said in the post, citing two confidential sources inside the DEA and another outside source with knowledge on the matter.

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Cannabis stocks got a lift last week in anticipation of the rescheduling order. The broader cannabis space pulled back Monday afternoon following new rescheduling order developments.

Here’s a look at some of the biggest movers in the cannabis space on Monday, at market close:

• Canopy Growth Corp CGC: Down 5.08%
• Tilray Brands, Inc TLRY: Down 2.38%
• Curaleaf Hldgs Inc CURLF: Down 0.35%
• Trulieve Cannabis Corp TCNNF: Down 8.78%
• Green Thumb Industries Inc GTBIF: Down 5.15%
• AdvisorShares Pure US Cannabis ETF MSOS: Down 2.79%
• AdvisorShares Pure Cannabis ETF YOLO: Down 1.47%

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