Cannabis Stocks Surge Following Trump’s Video on Senior Use

Cannabis stocks experienced a significant uptick on March 3, 2024, after former President Donald Trump shared a video advocating for the use of cannabis among seniors and promoting Medicaid coverage for cannabidiol (CBD) products. The nearly three-minute-long clip, posted on Trump’s Truth Social platform, highlights the potential benefits of hemp-derived CBD as a “game changer” for relieving pain and stress in older adults.

Following the video’s release, stocks for key cannabis companies surged when trading opened on Monday. Notable increases included Tilray, which saw its shares rise by over 40%, along with gains for Canopy Growth and Cronos Group. The AdvisorShares Cannabis exchange-traded fund (ETF), known as MSOS, also recorded significant growth.

Advocacy for Cannabis in Senior Healthcare

The video was produced by the Commonwealth Project, an organization focused on promoting cannabis use in healthcare for seniors. It commended Trump for his role in the passage of the 2018 farm bill, which legalized industrial hemp. “Now it’s time to educate doctors … provide Medicare coverage for CBD and give millions of seniors the support they deserve,” the video declared.

The cannabis industry has long sought further action from the federal government to decriminalize cannabis. Under the administration of President Joe Biden, the Department of Health and Human Services requested that the Drug Enforcement Administration (DEA) reconsider the classification of cannabis. Currently, cannabis is categorized as a Schedule I substance under the Controlled Substances Act, indicating it has no accepted medical use and carries a high potential for abuse.

Trump’s stance on cannabis had remained largely quiet until August, when he informed reporters that his administration was “looking at reclassification and we’ll make a determination over the next few weeks.” He acknowledged the complexities of the issue, stating, “I’ve heard great things have to do with medical, and I’ve heard bad things having to do with just about everything else.”

Impact of Current Regulations and Future Prospects

Presently, 40 states in the United States permit medical cannabis use, while 24 states allow recreational use. Advocates for medical cannabis argue that federal legalization would facilitate increased investment in research and widen access for those in need. The Commonwealth Project emphasizes the challenges faced in studying cannabis due to its current classification.

“While the DEA plans to reschedule cannabis, today it is still a Schedule I drug – a classification for the most dangerous substances such as heroin and LSD,” the organization notes on its website. This classification hampers comprehensive medical care and denies many Americans aged 65 and older access to potentially life-altering therapies.

The position of Terrance Cole, Trump’s DEA administrator, on the matter of cannabis reclassification remains uncertain. Since his appointment in July, Cole has not prioritized cannabis issues publicly, instead focusing on addressing the fentanyl crisis.

The recent surge in cannabis stocks reflects a potential shift in public perception and advocacy for cannabis use among seniors. As the conversation surrounding cannabis continues to evolve, industry stakeholders remain hopeful that federal policy will align with the growing support for cannabis as a legitimate medical option.