Cannabis Stocks Rise Following Trump’s CBD Endorsement for Senior Care
Shares of several U.S.-listed cannabis companies climbed sharply on Monday after former President Donald Trump highlighted the possible health benefits of cannabidiol (CBD) for older adults in a post on his Truth Social platform.
Trump’s message suggested that hemp‑derived CBD could “revolutionize senior healthcare” by slowing disease progression and serving as an alternative to certain prescription drugs. The comment came shortly after his administration signaled interest in re‑classifying marijuana under federal law, a move that could ease some regulatory pressures on the industry.
Market Reaction to the Announcement
Investors responded quickly. Canopy Growth’s shares rose 18.3 %, Tilray Brands jumped 42 %, Cronos Group added 15.5 %, and Aurora Cannabis gained 25.4 %. Exchange‑traded funds focused on the sector also posted strong gains, with AdvisorShares’ ETF up 21.8 % and Roundhill’s ETF up 21.6 %, putting both on track for their largest quarterly advances on record.
Ben Laidler, head of equity strategy at Bradesco BBI, noted that the “largest U.S. marijuana‑focused ETF, MSOS, is benefiting from President Trump’s surprise Sunday support for the potential benefits of CBD, with any support going a long way for this beleaguered listed sector.”
Regulatory Context and Potential Impacts
While Trump’s remarks centered on CBD—a non‑psychoactive compound derived from hemp—the broader conversation touched on the possible re‑classification of marijuana itself. During his first term, the Agriculture Improvement Act (the 2018 Farm Bill) already eased federal restrictions on hemp and hemp‑derived products, including CBD.
Marijuana remains classified as a Schedule I substance under the Controlled Substances Act, indicating a high potential for abuse and no federally accepted medical use. However, the Department of Health and Human Services, under President Joe Biden, had recommended moving marijuana to Schedule III, which acknowledges moderate to low dependence potential and accepted medical applications.
Daniela Hathorn, senior market analyst at Capital.com, explained that re‑classification would not legalize the drug but would alleviate certain burdens on cannabis operators, such as the tax restriction under Internal Revenue Code Section 280E, which disallows standard business deductions for companies trafficking in Schedule I substances.
If the tax barrier were lifted, more cannabis firms could pursue listings on U.S. exchanges and attract institutional capital. Additionally, aligning federal policy with the roughly 40 states that have legalized marijuana in some form would narrow the existing legal divide between state and federal statutes.
Industry Perspectives
A spokesperson for Ontario‑based Canopy Growth welcomed the administration’s acknowledgment of cannabis’s potential role in senior health and wellness, stating that the company is “excited about this momentum” and prepared to contribute meaningfully through its U.S. holdings as the policy path becomes clearer.
The recent price movements illustrate how sensitive cannabis equities remain to political signals. Over the past year, some stocks such as Canopy Growth have lost nearly half their value, while others like Cronos and SNDL have posted gains exceeding 50 % when Monday’s rally is factored in.
Investors will continue to watch for concrete steps toward re‑classification or other regulatory reforms that could translate the current enthusiasm into sustained sector growth.
