The U.S. Department of Health and Human Services is recommending to the U.S. Drug Enforcement Administration that cannabis should be reclassified as a Schedule III controlled substance under U.S. law from Schedule I now, according to a report by Bloomberg. Cannabis stocks are rallying, with the AdviserShares Pure US Cannabis ETF MSOS, +17.53% up by nearly 33%, and the ETFMG Alternative Harvest ETF MJ, +9.59% up by 19.5%. Among individual stocks, Canopy Growth Corp. CGC, +12.55% was up by 18.
was up by 17.5%. Cresco Labs CRLBF, +22.55% is rallying by 30.3%, Green Thumb Industries Inc. was up by 19.7% and Trulieve Cannabis TCNNF, +19.83% was up by 17.9%. Spokespeople for Health and Human Services and the DEA did not immediately reply to emails from MarketWatch. In October, 2022, President Joe Biden asked Attorney General Eric Garland and Health and Human Services Secretary Xavier Becerra to start the process of reviewing how marijuana is scheduled under federal law.