Cannabis Companies' Stocks Rise on Expectations of Regulatory Change in the US, Following Trump's Signal

Stocks of cannabis sector companies saw a sharp increase in the United States this Friday, after a report pointed out that President Donald Trump is considering relaxing the federal rules governing cannabis, a move that could represent a significant change for the industry.

According to the investigation, the government is considering the possibility of reclassifying cannabis in federal legislation, currently classified as a high-risk substance with no recognized medical use. The change would place the plant in a less restrictive regulatory category, which would not mean federal legalization, but could reduce regulatory and fiscal barriers faced by companies in the sector.

The expectation of regulatory progress boosted the shares of publicly traded companies, as well as exchange-traded funds (ETFs) focused on the cannabis industry, reflecting investors' optimism about the possibility of a more predictable business environment.

Despite the positive market reaction, the report emphasizes that no official decision has been announced so far, and any potential changes would still depend on internal procedures and guidance to relevant federal agencies.

Cannabis remains prohibited by US federal law, even though it is allowed for medicinal or recreational use in several states. Any change in this scenario is considered strategic for a sector that has faced volatility, difficulties in accessing credit, and limitations imposed by the current regulatory framework in recent years.

Source: CNBC