Put this in your pipe and smoke it: Donald Trump just legalized marijuana across the US.
As On The Money has been reporting since April, our famously drug-and-drink-averse president has been inching ever closer to making marijuana significantly less criminal in the eyes of the federal government.
On Thursday, it finally happened. He signed an executive order to “reclassify” weed to a “Schedule III” drug — throwing it into the same category as codeine-laced Tylenol, testosterone and anabolic steroids. That’s versus its current “Schedule I” classification as a controlled substance, which it shares with hard-core staples like heroin, LSD and ecstasy.
This will surely blow the minds of the nation’s 17 million potheads, many of whom partake in not only a substance but a culture that bears scant affinity with the MAGA hat-wearing real estate tycoon who occupies the White House.
Hang on — hasn’t pot already been legal in nearly all 50 states? The answer is yes. But the implications are big now that the feds are classifying a so-called “Schedule III” drug, a substance “with a moderate to low potential for physical and psychological dependence,” as opposed to a “Schedule I” drug, which has “a high potential for abuse and serves no legitimate medical purpose.”
Namely, a Schedule III classification means the $60 billion-a-year business of weed in the US can be “banked” and it can grow exponentially as the US banking system will no longer consider it off limits.
It also means Wall Street will no longer shy away from underwriting the stock of any company that in Pot Inc. parlance “touches the plant.” Marijuana companies will gain access to cheaper, more seamless financing as opposed to the cumbersome alternatives they have relied upon to date, including IPOs and stock listings in places like Canada.
Yes, there are skeptics about taking pot mainstream. The marijuana of today is far more potent than the stuff I grew up on that gave you the munchies and induced sleep. Do we really want millions of Americans stoned out of their minds when they drive to work in the morning?
As On The Money has been reporting since April, Pot Inc. has argued to various members of Team Trump that the benefits of increased weed legalization outweigh even these legitimate concerns. Plus, it’s absurd to suggest weed is as dangerous as heroin. And government regulation, they contend, can keep it out of the hands of minors.
Longtime hedge fund trader Marc Cohodes is both an investor in marijuana companies and a medical pot user after shoulder surgery. He has been at the tip of the spear in getting the White House to move off the lumping pot with smack. Cohodes has argued that making weed an accepted business here in the US is far better than the status quo.
It means marijuana can be regulated more safely and deprive the drug cartels of income. Tax revenues would flow into federal coffers as the industry expands. It will serve the medical community, helping wean people off dangerous and addictive opioids.
And Trump will benefit from the politics of Pot Inc. — much like he did with the crypto investors he courted successfully during the 2024 election. Those who indulge in marijuana — from gummies and pain-relieving ointments to the good old-fashioned smokable joint — are often single-issue voters.
“He really needs to be commended for having the courage to do this,” Cohodes tells On The Money.
The majority of Americans see pot as no more dangerous than booze. Our president isn’t smoking the stuff, but seems to agree.
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