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Cannabis stocks gained significant ground Wednesday following a report that the US Drug Enforcement Administration was conducting a review of marijuana’s classification as a Schedule 1 drug.
Punchbowl News reported earlier Wednesday that the DEA had informed US House members of the review, according to a letter obtained by the news agency.
Marijuana is currently classified as a Schedule I substance, meaning that the federal government officially regards it as a substance with no currently accepted medical use and a high potential for abuse. Other Schedule I drugs include heroin and LSD.
Last August, Bloomberg reported that the US Department of Health and Human Services sent a letter to the DEA recommending that marijuana be reclassified as a Schedule III substance, a category that includes Tylenol with codeine and ketamine.
Shares of several multi-state operators moved higher Wednesday afternoon, including Cresco Labs (OTCQX:CRLBF), Green Thumb Industries (OTCQX:GTBIF), Curaleaf Holdings (OTCPK:CURLF), Acreage Holdings (OTCQX:ACRHF), Ayr Wellness (OTCQX:AYRWF), Verano Holdings (OTCQX:VRNOF), Trulieve (OTCQX:TCNNF)and Jushi Holdings (OTCQX:JUSHF).