Pot Inc. is waiting to cash in on Trump's marijuana reclassification — but the DOJ is still dragging its feet
A December 2025 executive order to move marijuana from Schedule 1 toward Schedule 3 has the DOJ nearing final rules, raising hopes that easier access to bank financing could unlock Pot Inc.’s growth. Yet widespread adoption hinges on how broadly the law allows medical cannabis, with banks, card networks, and listings constrained by current wording and federal limits. While investors see potential momentum, regulatory and political hurdles persist, muting a full-scale mainstream collapse of the stigma and a rapid capital flood. The outlook remains uncertain, with federal action seen as pivotal but not guaranteed to unleash a cannabis market on par with alcohol or tobacco. Near-term developments will hinge on Bondi’s final rule and broader banking/legislative dynamics.
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President Trump’s December 18, 2025 executive order seeks to reclassify marijuana to Schedule 3, enabling medical use with doctor oversight; AG Pam Bondi is expected to publish a final rule in the Federal Register implementing the change.
DOJ sources say there is no hard deadline for Bondi’s action; the task is complex, and attorneys are working through wording and internal consensus as discussions continue.
Pot Inc. is described as a $70 billion business seeking greater scale, but it confronts banking barriers as major lenders (JPMorgan, BofA, Citi) and major card networks largely avoid marijuana-related transactions under current rules.
US stock exchanges typically avoid domestic weed listings that touch the plant, often pushing issuers to list in Canada, while a shadow-banking ecosystem remains small relative to medical cannabis ambitions.
There is internal skepticism toward legalization within the administration, with the president prioritizing keeping cannabis away from kids, hence the emphasis on medical rather than recreational use in the Schedule 3 plan.
Investors express optimism about legalization momentum, citing the EO, Bondi’s rule process, and supportive comments from Dr. Mehmet Oz regarding a Medicare pilot for medical marijuana.
Market response shows a rally in cannabis-focused securities (about a 30% gain since the EO) but subsequent pullbacks have occurred as Bondi’s review unfolds and execution remains uncertain.