Link: https://stratcann.com/news/us-presidents-order-to-reschedule-cannabis-welcomed-by-canadian-industry/
Outlet: STRATCANN
US President’s order to reschedule cannabis welcomed by Canadian industry
DECEMBER 18, 2025
DAVID BROWN
As part of an announcement on Thursday from the Oval Office, President Trump also called on the US Congress to update the definition of hemp-derived cannabinoid products to allow access to “full-spectrum CBD products.”
The President’s executive order also calls for creating a regulatory framework for CBD, including guidance on THC limits and a focus on research utilizing real-world evidence.
As a result, the US Attorney General was ordered to expedite the rulemaking process for rescheduling marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA), following a 2023 recommendation from HHS. This process was initiated under then President Joe Biden in 2022, but that process was delayed in January 2025 when a US court paused a hearing.
The president also noted, as did others speaking from the Oval Office, that this new executive order does not legalize cannabis “in any way, shape or form, and in no way sanctions its use as a recreational drug.”
“It’s never safe to use powerful controlled substances in a recreational manner, and especially in this case,” continued the President. “So unless a drug is recommended by a doctor for medical reasons, just don’t do it.”
The Canadian-based Canopy Growth Corporation said the announcement is a step towards a more mainstream cannabis market.
“Canopy Growth welcomes the decision to reclassify cannabis in the United States, which marks an important step toward modernizing federal cannabis policy and advancing the normalization of a regulated market,” said a spokesperson from Canopy in a statement provided to StratCann.
“Rescheduling supports a more rational, science-based framework that expands access to research, improves patient care, and strengthens the transition to regulated channels. Greater regulatory clarity also helps create a more sustainable operating environment for responsible businesses and long-term investment in the sector.
“Canopy Growth is well positioned in the US through Canopy USA, with established operations and leading brands including Jetty, Wana, and Acreage, alongside Canopy Growth’s strategic stake in TerrAscend. Our US strategy has been built to align with evolving regulation, and we view this milestone as supportive of long-term value creation and disciplined, responsible growth.”
High Tide, a Canadian company that operates the largest chain of cannabis stores in Canada under the Canna Cabana brand, also said it welcomes the announcement, especially the comments in regard to cannabidiol. High Tide also has a footprint in the US CBD market.
“This executive order marks one of the most consequential steps forward in US federal cannabis reform in more than 50 years,” said Raj Grover, Founder and CEO of High Tide. “While rescheduling isn’t full legalization, the President’s announcement regarding Medicare reimbursements for CBD products represents a particularly important development, signaling growing bipartisan momentum toward more common-sense cannabis and CBD policy.
“”High Tide has successfully scaled a differentiated retail model across multiple jurisdictions and remains well positioned for the opportunities ahead, particularly in the hemp-derived CBD category,” he continued. “Our leading US CBD brands, NuLeaf Naturals and FAB CBD, are developing Medicare-aligned product categories to support potential inclusion within Medicare Advantage supplemental benefits, building on our existing CGMP-certified operations and large direct-to-consumer customer base.
“In parallel, we are exploring potential structures that may allow us to expand Canna Cabana into the US through licensing, while maintaining compliance with our NASDAQ and TSXV listings. With approximately four million U.S. customers already in our database, we see meaningful long-term potential across both federally compliant CBD wellness and regulated cannabis markets.”
Tilray Brands, Inc. which has cannabis operations in Canada, the United States, Europe, Australia, and Latin America, responded to the news by announcing the launch of Tilray Medical USA, with a goal of introducing medical-grade cannabis products in targeted therapeutic formats.
“We support President Trump’s decision to reschedule cannabis as a constructive and necessary evolution of U.S. federal policy,” said Irwin D. Simon, chairman and CEO of Tilray Brands. “This action aligns regulation with a vast body of scientific and medical data supporting cannabis medical use and safety, economic progress, and a healthcare-focused framework, while creating a more credible foundation for medical cannabis research, clinical development, and regulatory clarity. It also signals a future shaped by innovation, responsible oversight, and evidence-based policy. We believe this landmark decision is a significant catalyst for positive change within the health, wellness, and business communities across the US and a critical, incremental step toward descheduling and comprehensive regulation.”
A representative with Organigram Global provided this comment to StratCann via email, as well:
“Today’s executive order directing the U.S. government to take steps toward the reclassification of cannabis from Schedule I to Schedule III is a meaningful signal toward more evidence-based federal policy. While the process is not yet final and will require review and action by the Attorney General, Organigram supports a science-led approach that advances medical research and helps evolve federal cannabis policy.
“Organigram Global views the potential reclassification of cannabis in the United States as a significant regulatory signal for the global cannabis industry. While the immediate impact on our Canadian operations may be indirect, this shift represents an important step toward broader institutional acceptance of cannabis worldwide. We will continue to monitor developments closely and will remain focused on operating compliantly across all jurisdictions where we do business.”
Michael A. DeGiglio, president and CEO of Village Farms Inc. commented, “We commend President Trump for his efforts to overcome decades of policy failures and bureaucratic red tape to advance meaningful reform that will help improve the lives of millions of Americans. We look forward to a better future in the United States in which federal cannabis policy follows scientific and medical research to unlock a new wave of investment and innovation in cannabinoid-based therapeutic products.”
Village Farms is based in the US, but is the parent company of Canadian-based Pure Sunfarms. Village Farms’ wholly-owned Balanced Health Botanicals offers CBD brands and e-commerce platforms in the US.
Stocks for each of these companies dropped in the immediate wake of the President’s announcement.
As a result of the announcement, the US Centers for Medicare & Medicaid Services (CMS) Innovation Center (CMMI) models are also expected to make Americans on Medicare eligible to receive CBD sometime in 2026, according to comments from the head Centers for Medicare & Medicaid Services (CMS), the former television doctor Mehmet Oz.
Medicare advantage insurers are agreeing to consider CBD for the 34 million Americans they cover.
“These CBD products must first meet local and state quality and safety standards,” said Oz. “They must come from legitimate sources. They must abide by other regulations of those states. With these boxes checked, patients can be eligible for up to five hundred dollars hemp-derived products each year. This is the first government-led testing of quality and outcomes for patients across different conditions, and it delivers on the need for more data collection, research into hemp usage.”