WASHINGTON, D.C.: U.S. President Donald Trump ordered a significant shift in federal marijuana policy, directing regulators to ease restrictions on the drug in a move that could mark the most significant change in decades and raise fresh hopes across the cannabis industry.

The order instructs the attorney general to move quickly toward reclassifying marijuana under federal law. If approved, the drug would be listed alongside substances such as common painkillers, ketamine, and testosterone, a sharp departure from its current status among drugs deemed to have no accepted medical use.

The move could reshape the U.S. cannabis industry by unlocking billions of dollars in medical research funding and expanding access to banking and investment. It drew praise from Senate Democratic Leader Chuck Schumer, even as dozens of Republicans criticised the decision.

Trump said marijuana would remain illegal at the federal level and subject to a complex patchwork of state and local laws. Some industry experts cautioned that congressional action would still be required to create lasting regulatory stability.

"We have people begging for me to do this, people that are in great pain for decades," Trump told reporters at the White House. While the president said he personally had no interest in using controlled substances, he acknowledged medical demand.

"I don't want it, okay," he said. "I'm not gonna be taking it. But many people do want it. A lot of people need it."

Senior administration officials said the primary goal of the order was to expand medical research into marijuana and related products to better understand their risks and therapeutic potential. The Centers for Medicare and Medicaid Services plans to allow some beneficiaries to use hemp-derived CBD products as soon as April.

Dozens of Republicans in the House and Senate urged Trump not to sign the order, warning of broader consequences.

"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," they wrote.

Marijuana remains the most widely used illicit drug in the United States and globally. Nearly one in five U.S. residents uses it annually, according to the Centers for Disease Control and Prevention. Millions of Americans have been arrested for possession, even as publicly listed companies sell cannabis-related products.

The Drug Enforcement Administration must still review the recommendation to move marijuana to Schedule III under the Controlled Substances Act, a process that has been slowed by bureaucracy. Marijuana is currently classified as a Schedule I substance alongside heroin, ecstasy, and peyote.

Even with reclassification, marijuana would remain federally controlled, subject to restrictions and criminal penalties. State laws vary widely, ranging from full legalization to outright bans. Since California legalized medical marijuana in 1996, regulations have steadily loosened nationwide.

Cannabis stocks initially rose on the announcement, then reversed course. By close on December 18, U.S.-listed shares of Tilray fell 4.2 percent, Aurora Cannabis dropped 3.4 percent, SNDL slipped nearly 1.5 percent, and Canopy Growth sank about 12 percent, after earlier gains of 6 percent to 12 percent.

Some analysts said investor disappointment stemmed from expectations that cannabis banking reforms would be included in the order, which they were not.

"This shift marks an important step toward greater regulatory clarity and institutional acceptance of cannabis worldwide," a spokesperson for Organigram Global said.

Funding remains a significant challenge for cannabis producers, as federal restrictions deter banks and institutional investors, forcing companies toward costly financing and allowing illegal markets to persist.

While Trump has built a law-and-order reputation, including aggressive anti-drug measures, he has also departed from Republican orthodoxy at times, including issuing pardons for individuals convicted of federal drug-related offences.