Cannabis stocks jumped on Friday as the White House prepared to significantly ease federal restrictions on marijuana.

📈 Why Cannabis Stocks Are Rallying Today (Dec. 12, 2025)

$Canopy Growth Corporation(CGC)$  

$Tilray Inc.(TLRY)$  

$Amplify Seymour Cannabis ETF(CNBS)$  

$Innovative Industrial Properties Inc(IIPR)$  

$Green Thumb Industries Inc.(GTBIF)$ 

Main catalyst:

Reports broke on Friday that U.S. President Trump is expected to push for a major easing of federal marijuana restrictions—specifically by moving cannabis from a Schedule I drug (most restricted) to Schedule III (less restricted).

Investors interpret this as potentially transformative for the cannabis industry because:

1) Federal rescheduling could ease tax burdens

Under current law, cannabis is Schedule I, which means cannabis companies can’t claim normal business deductions under IRS Section 280E. Changing to Schedule III could materially improve profitability.

2) Better access to banking & capital

Federal restrictions make banks and institutional investors wary of the space. A shift in federal stance could bring more traditional financing back into cannabis.

3) Broader investor optimism and sentiment

Even if no law has actually changed yet, the possibility of rescheduling is enough to send stocks sharply higher as traders price in future growth opportunities.

4) Sector-wide reaction

The move isn’t just one stock — ETFs and multiple major cannabis companies (Tilray, Canopy Growth, Aurora, etc.) are rallying together as part of a thematic play.

Caveat: There’s also cautious commentary noting that no official decision has been finalized yet, so some of this move is headline-driven and could reverse if policy momentum stalls. 

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