Cannabis Rescheduling Marks Historic Shift Despite Market Turmoil
President Donald Trump announced earlier today that he has signed an executive order for the reclassification of cannabis to Schedule III. Shadd Dales and Anthony Varrell will are joined by Michael Bronstein, President of the American Trade Association for Cannabis & Hemp, and leading cannabis attorney Shane Pennington. Later, veteran investor and cannabis advocate Marc Cohodes will break down how markets might react to the announcement. Plus, Jesse Redmond, former cannabis analyst and Head of IR & Business Development from LEEF Brands (OTCQX: LEEEF) explains why the long game is the right approach when investing in cannabis.
President Trump signed an executive order directing the Department of Justice to move cannabis from Schedule I to Schedule III, marking the most significant federal cannabis reform in more than 50 years. Despite the milestone, cannabis equities sold off sharply, with MSOX down more than 50% on the day, leaving investors stunned and searching for answers.
While price action dominated emotions, the executive order fundamentally changes the industry’s trajectory. The order explicitly instructs federal agencies to expedite rescheduling within the bounds of the law, expands research into medical marijuana and cannabinoids, and highlights medical use cases ranging from cancer treatment to pain management and PTSD. The administration’s messaging signals a clear shift away from prohibition-era framing toward science-driven policy.
Cannabis advocates Michael Bronstein and Shane Pennington provide context. Both stress that this is a “before and after” moment in federal cannabis policy. Pennington notes that directing the DOJ, rather than the DEA, is a crucial distinction that reduces resistance and accelerates implementation. That includes how rescheduling will now open the door for expanded medical research, and how the administration might push Congress on the SAFER Banking Act.
Veteran investor Mark Cohodes focuses on the market reaction, arguing that the selloff reflects short-term trading dynamics rather than fundamentals. Jesse Redmond of LEEF Brands reinforces the long-term view, arguing that rescheduling provides something cannabis markets lacked for years: clear rules. With 280E expected to be eliminated, businesses can finally be modeled realistically, opening the door to new capital and strategic growth. Redmond highlights opportunities in low-cost cultivation and hemp-derived cannabinoids as the regulatory landscape evolves.
Tune in for the full episode.
