Trump’s marijuana order stalls at the DEA, jeopardizing Canopy Growth’s rally. Last December, President Donald Trump signed Executive Order 14370 to fast‑track marijuana’s move to Schedule III, sparking a sharp rally in cannabis stocks. Canopy Growth (NASDAQ: CGC) jumped from $1.15 to nearly $2 per share in a single day.
Shares have since reversed those gains, falling back as the rescheduling process stalled. The slowdown stems from a temporary stay issued by DEA Chief Administrative Judge Derek C. Julius, who paused the rulemaking after a GAO briefing request, and from lingering concerns over Canopy’s Canadian operations.
The latest on the DEA’s rescheduling efforts
On September 29, Judge Julius granted a stay pending a GAO report on the proposed reschedule. The DEA responded on October 9, rejecting the briefing request but agreeing to the judge’s timeline, which extended the stay until October 13. The agency now must answer the procedural challenge before the process can continue.
The silver lining for Canopy Growth
Canopy’s stock slide is a side effect; the company’s primary market remains Canada, where recreational sales face weak demand and mounting losses. Persistent operating deficits and a $200 million at‑the‑market equity offering threaten its $300 million valuation, making the U.S. reschedule news a minor factor for investors.
Should you buy Canopy Growth now?
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Thomas Niel has no position in any mentioned stocks, and The Motley Fool discloses no holdings. A disclosure policy applies.
