TLDR
- Tilray (TLRY) stock jumped 14.2% on Wednesday following a report the Trump administration may reclassify cannabis
- The Axios report cited an administration official saying the move could come as soon as Wednesday
- Reclassification would move cannabis from Schedule I to Schedule III — the same category as Tylenol with codeine
- Rival Canopy Growth (CGC) gained 21.1%, Curaleaf (CURLF) surged 26.3%, and the MSOS ETF rose 19.4%
- The move would not legalize marijuana federally but could open up banking access and medical research
Tilray stock had already been climbing this week, touching a high of $8 — up over 30% from its yearly low — before Wednesday’s news gave it another push.
The catalyst was a report from Axios, citing a White House official, that the Trump administration was preparing to reclassify cannabis as a Schedule III controlled substance. The report said the move could come as soon as Wednesday.
Cannabis is currently a Schedule I drug, grouped alongside heroin and LSD. Schedule III puts it in the same bracket as Tylenol with codeine — a meaningful step down in federal classification.
Axios reports the Trump administration could move as soon as Wednesday to reclassify marijuana toward Schedule III, easing federal barriers to medical research.
It would not federally legalize cannabis or automatically change existing possession sentences$CGC $TLRY $MSOS pic.twitter.com/VieWMK7Fd3
— Wall St Engine (@wallstengine) April 22, 2026
The move follows an executive order signed by President Trump in December, which directed the attorney general to accelerate the rescheduling process and expand medical research into cannabis. That order had no specific timeline attached.
Wednesday’s Axios report put a clock on it. Markets responded fast.
Tilray (TLRY) finished the day up 14.2%. Volume in the stock hit more than 28 million, compared to a 30-day daily average of just 2.8 million. That’s a ten-fold spike in trading activity.
Canopy Growth (CGC) gained 21.1%. Curaleaf (CURLF) — a US-based operator — surged 26.3%. The AdvisorShares Pure US Cannabis ETF (MSOS) climbed 19.4% to $5.11, though it remains far below its February 2021 record close of $55.05.
The Justice Department did not respond to a request for comment on the Axios report.
What Reclassification Would Actually Mean
Reclassification would not make marijuana legal at the federal level. But it would matter in practical ways.
One of the biggest pain points for cannabis companies has been banking. Because marijuana remains federally illegal, many financial institutions won’t work with cannabis businesses. Reclassification could ease that friction.
It would also open the door to broader medical research, which has been limited by the drug’s Schedule I status.
For Tilray specifically, the news matters even though the company doesn’t currently sell cannabis in the US. The company has stated it is waiting for a more favorable regulatory environment before entering the American market.
Tilray’s Recent Business Performance
Tilray’s most recent quarterly results showed cannabis revenue up 19% to $64.8 million, driven by international sales, acquisitions, and its strong position in Canada.
The company has been building out its alcoholic beverages business as a parallel revenue stream. It acquired several brands including Brewdog, the UK’s largest craft beer brand, and struck a partnership deal with Carlsberg.
Beverage revenue, however, came in at $43 million last quarter — down from $56 million in the same period a year earlier.
On the profitability front, net loss improved 97% to around $2.4 million. The company’s internal “Project 420” cost-cutting initiative is aimed at pushing it further toward profitability.
Tilray and other Canadian cannabis producers have lost billions of dollars over much of the past decade, following years of overexpansion after Canada legalized recreational use in 2018.
The stock’s 14.2% single-day move on Wednesday was the largest in recent months, with volume confirming the market took the reclassification report seriously.
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