WASHINGTON - President Donald Trump confirmed Monday that his administration is actively reviewing whether to reclassify marijuana under federal law, a potential shift that could send ripples across the cannabis supply chain from cultivators to wholesalers to retailers.

Speaking at the White House, Trump described the issue as “very complicated” but said a decision could come “in the next few weeks.” If approved, the move could reclassify marijuana from Schedule I, its designation for over 50 years alongside heroin and LSD, to a Schedule III controlled substance, opening the door to broad regulatory and economic changes.

“We’re looking at it. We’re looking at it strongly,” Trump said, without confirming whether his administration would follow the Biden-era recommendation to make the change.

Why Schedule III Matters for Distributors and Wholesalers

A move to Schedule III would recognize marijuana’s accepted medical uses and reduce its legal penalties, changes that would immediately benefit B2B operations. Industry analysts say the biggest gains for supply chain businesses would come from:

• Tax relief: Removal from Section 280E would allow cannabis companies to take normal business deductions, freeing up capital for expansion and infrastructure.
• Banking access: Greater access to traditional financial services could streamline wholesale transactions, improve cash flow, and reduce reliance on risky cash-based operations.
• Interstate readiness: While full interstate commerce would still require broader legalization, reclassification could pave the way for eventual cross-border trade in compliant products.
• Research and product innovation: Easier research approvals could accelerate the development of new cannabinoid formulations, benefiting wholesalers who need cutting-edge product offerings.

Market Reaction Points to Supply Chain Growth Potential

The immediate reaction from financial markets underscored the potential upside. Major cannabis stocks, including Tilray Brands, Cronos Group, Canopy Growth, Aurora Cannabis, and Village Farms, rallied sharply after Trump’s announcement. The AdvisorShares Pure US Cannabis ETF (MSOS) surged more than 25% in a single day.

For wholesalers, this momentum could translate into increased B2B orders, expanded retail partnerships, and stronger demand for diverse product categories, from hemp-derived cannabinoids to full-spectrum flower.