President Trump signed an executive order on Thursday to expedite and complete the process of reclassifying marijuana as a Schedule III drug from a Schedule I drug. The order also greenlights a pilot program to reimburse Medicare patients for products containing CBD.
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“We have people begging for me to do this, people that are in great pain for decades,” Trump said.
The AdvisorShares Pure US Cannabis ETF (MSOS) is plunging on the development in a “buy the rumor, sell the news” scenario, as reports circulated earlier this month that Trump was considering the action.
Republicans Push Back Against Trump’s Executive Order
A group of Congressional Republicans pushed back against the move, arguing that the reclassification would have harmful effects and worsen addiction problems for some people. “Reclassifying marijuana as a Schedule III drug will send the wrong message to America’s children, enable drug cartels, and make our roads more dangerous,” read a letter from 18 Senators and 44 House Republicans to Trump.
Earlier this week, Trump said that downgrading marijuana to a lower schedule would allow for more research to be conducted on its effects.
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