San Antonio, December 19, 2025
President Trump’s recent executive order to reclassify cannabis from Schedule I to Schedule III could transform the cannabis industry by easing regulations and fostering economic growth. While not legalizing recreational use, the change may reduce tax burdens and encourage investment, particularly in medical research and products like hemp-derived CBD for older adults. The mixed reactions in the stock market reflect ongoing challenges, including limited access to banking for cannabis businesses, showing the complexity of this evolving landscape.
Trump’s Executive Order on Cannabis: A Game Changer for the Industry
New classification could ease regulations and boost economic opportunities
San Antonio, Texas – President Donald Trump’s recent executive order to reclassify cannabis from a Schedule I to a Schedule III substance is heralding a potential transformation in the cannabis industry. As entrepreneurs and business leaders in the community contemplate the implications, the order may streamline operations and facilitate new investment opportunities, benefiting those dedicated to innovation in this evolving sector.
On December 18, 2025, the President signed the executive order directing the Drug Enforcement Administration (DEA) to accelerate the reclassification of cannabis. This significant policy shift aims to reduce federal restrictions that have long plagued the cannabis sector, which has struggled under its current Schedule I status. Although this change does not legalize recreational use of cannabis, it is expected to lessen the tax burdens on businesses while promoting essential medical research. Additionally, the executive order introduces a Medicare pilot program that will allow eligible older adults to receive free, legal hemp-derived CBD upon recommendation from their physicians.
Stock Market Reactions to the Announcement
Despite the potential positives that come with the reclassification, the immediate stock market response has been somewhat mixed. Major cannabis companies, including Tilray Brands, Canopy Growth, and Curaleaf Holdings, experienced declines of 4.2%, 12.5%, and 32%, respectively, following the executive order. However, it’s noteworthy that these companies had seen substantial gains earlier in December, reflecting some level of investor optimism about forthcoming regulatory changes. This volatility underscores the complexity of the market as stakeholders assess the long-term impacts of new regulations.
Enduring Challenges for Cannabis Companies
Even with the anticipated benefits of reclassification, challenges persist for cannabis companies across the nation. Accessing capital remains a significant hurdle. Many banks are still hesitant to provide financial services to cannabis businesses due to ongoing legal uncertainties. Despite the federal shift, these financial institutions remain cautious, which could inhibit the industry’s growth and potential under the new guidelines. The hesitance of large banks to engage with cannabis-related ventures may stifle the progress that many have been working toward, illuminating the need for continued advocacy and dialogue around sensible regulatory reform.
A Step Toward Progressive Policy and Business Growth
This reclassification aligns federal regulations with the changing landscape of cannabis laws at the state level and the evolving public perception surrounding cannabis use in the United States. For local entrepreneurs in San Antonio and across Texas, the order brings hope for a more conducive business environment. As the DEA undertakes its review process, the industry must remain agile, adapting to the new regulatory framework that could reshape its future.
Conclusion: Looking to the Future
As we navigate these regulatory changes, it is vital for the business community in San Antonio to remain engaged and supportive of local cannabis initiatives. By championing innovation and advocating for reasonable regulations, Texas entrepreneurs can harness new opportunities for economic growth within the cannabis sector. The key takeaway is clear: the future is ripe for those willing to adapt and overcome challenges in this rapidly evolving landscape.
Frequently Asked Questions (FAQ)
What does the executive order signed by President Trump entail?
The executive order directs the DEA to expedite the reclassification of cannabis from a Schedule I to a Schedule III substance, aiming to reduce federal restrictions and facilitate medical research. It also introduces a Medicare pilot program to provide free, legal hemp-derived CBD to older adults upon physician recommendation.
How have cannabis stocks reacted to the announcement?
Following the executive order, Tilray Brands’ stock declined by 4.2% to $12.33, Canopy Growth fell 12.5%, and Curaleaf Holdings dropped 32%. Despite these declines, these companies have seen significant gains in December, indicating investor optimism about the regulatory changes.
What challenges do cannabis companies still face after reclassification?
Despite the reclassification, cannabis companies continue to face difficulties accessing capital from large banks due to ongoing legal uncertainties. Financial institutions remain cautious, fearing potential risks under current federal law, which may impede the industry’s growth despite the regulatory shift.
Key Features of the Reclassification Announcement
| Feature | Description |
|---|---|
| Executive Order | Directs the DEA to expedite reclassifying cannabis from Schedule I to Schedule III. |
| Medicare Pilot Program | Introduces a program to provide free, legal hemp-derived CBD to older adults upon physician recommendation. |
| Stock Market Reaction | Initial declines in cannabis stocks, with Tilray Brands down 4.2%, Canopy Growth down 12.5%, and Curaleaf Holdings down 32%. |
| Banking Challenges | Continued difficulties for cannabis companies in accessing capital from large banks due to legal uncertainties. |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
