Cannabis Industry Eyes Major Shift as Trump Administration Signals Policy Change

Market Reacts to Presidential Signal on Medical Marijuana

Last Monday, a wave of optimism swept through cannabis stocks following President Trump’s recent activity on Truth Social. The president shared a video promoting CBD and Medicare coverage for medical marijuana—a move that sparked immediate speculation about federal legalization becoming reality sooner than expected.

The market response was unmistakable. Canopy Growth (NASDAQ: CGC) surged 17% in a single trading session, Aurora Cannabis (NASDAQ: ACB) jumped 28%, Tilray (NASDAQ: TLRY) skyrocketed 60%, and Curaleaf Holdings (OTC: CURLF)—the largest U.S.-based cannabis company—gained over 37%. Investors clearly interpreted the signal as bullish for the entire sector.

What Exactly Did Trump Post?

The video that triggered this rally wasn’t produced by Trump himself, but rather by the Commonwealth Project, a nonprofit organization led by philanthropist Howard Kessler. The organization focuses on bringing medical cannabis into mainstream healthcare for seniors aged 65 and older.

The video presents a compelling argument: it highlights the body’s natural endocannabinoid system, which degrades with age and causes common ailments like chronic pain and arthritis. Rather than relying on what the video calls “dangerous and addictive pharmaceuticals,” it promotes hemp-derived CBD as a healthier alternative that could improve sleep quality, reduce stress, and potentially extend lifespan.

The pitch includes a striking economic angle: widespread medical marijuana adoption could save the U.S. healthcare system up to $64 billion annually. For an administration focused on cutting government spending, this financial argument appears to have resonated strongly enough to warrant sharing the message on a presidential platform.

The Politics Behind the Signal

Adam Stettner, CEO of FundCanna (a major lender to cannabis companies), described Trump’s post as “the strongest signal yet that movement on cannabis policy may be imminent.” He emphasized that this marks the first time a sitting U.S. president has publicly advocated for Medicare coverage of cannabinoids—a significant departure from previous administrations’ stances.

Industry analysts view this as a preliminary test run to gauge public reaction. The question now circulating among investors and policymakers alike: Is this the beginning of a coordinated push toward federal legalization?

Timeline Speculation: When Could Legalization Happen?

Given that only three months remain in 2025, a formal announcement is more likely to come during the State of the Union address in January 2026. That would set the stage for Congressional action in early 2026.

The process would follow this path: presidential proposal → congressional debate → House and Senate votes → presidential signature. With demonstrated support from both sides of the political aisle and a general trend toward cannabis acceptance, passage appears likely.

Based on typical legislative timelines, federal marijuana legalization could become reality by mid-2026—though any prediction remains subject to political dynamics and unexpected developments.

What This Means for the Cannabis Sector

If legalization does occur, the implications are substantial. Currently, federal prohibition limits banking access, complicates interstate commerce, and creates regulatory uncertainty for cannabis companies. Legalization would remove these barriers and open federal markets that have remained inaccessible under current law.

The enthusiasm already visible in stock price movements suggests investors are pricing in a significant probability of this outcome. However, timing remains uncertain—whether implementation takes six months or longer could determine near-term stock performance.

Looking Ahead

The coming months will reveal whether Trump’s recent post represents genuine policy movement or merely exploratory messaging. Market participants are clearly betting on the former, and if the administration follows through with formal legalization efforts, 2026 could mark a watershed moment for the cannabis industry.