Enter Moby, an investment advice platform that can help you reduce the guesswork when selecting stocks and ETFs of any kind. Moby’s team of experts use AI-backed insights to carefully select between one and three stocks per week. Recommendations are delivered to you in simple, easy-to-understand language — no overbearing financial jargon here.

Even better, in four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12%, on average. With their easy-to-understand format, you can become a smarter investor in just five minutes, all with their 30-day money-back guarantee.

Plus, you can test out Moby for free with a 7-day trial when you register now. That way, you can try before you buy, even if you’re cautious about cannabis.

But reclassifying marijuana is not without its critics. The National Sheriffs’ Association (5) submitted a written opposition stating that marijuana has a “high abuse potential” and has resulted in fatal vehicle crashes.

The administration says it is early in the decision process, but plans to decide in the coming weeks.

“I’ve heard great things having to do with medical, and I’ve [heard] bad things having to do with just about everything else,” Trump said, according to ABC News. “Some people like it, some people hate it.”

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Support for cannabis legalization has grown in recent years. According to polling from Gallup (6), about 64% of Americans think that marijuana should be legal — down from 68% in 2024. This drop has largely been driven by shifting Republican sentiment on the issue.

The attitude and the legalization of recreational and medical use in dozens of states show that the tide appears to be turning on marijuana use in America. But the potential reclassification of marijuana also presents a major investment opportunity. If you’re considering investing in cannabis, here are a few things to know.

Cannabis stocks have a history of wild swings (7). Even promising policy news often leads to short-term rallies followed by steep corrections, and legal changes that stick can cause steep drops or increases.

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Fine art has consistently outperformed the stock market in the long run. In fact, contemporary art outperformed the S&P 500 with a compound annual growth rate of 12.6% between 1995 and 2022, according to a report from Fortune magazine.

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Even if reclassified, marijuana will still be federally illegal for recreational use. That means banking restrictions and legal uncertainty will continue to weigh on the industry. While this may change over time, don’t expect the reclassification to change everything overnight.

Investors can buy shares of cannabis growers and dispensaries, exchange-traded funds (ETFs) that track the sector, or pharmaceutical companies researching cannabis-based drugs. Each type of cannabis stock comes with a different level of risk and growth potential, so make sure you understand your risk level.

Investors in this sector also need reliable tools to manage their stock picks. Whether you’re bullish on marijuana or believe it’s nothing more than a puff of smoke, you’ll need something to help you place your bets.

That’s where Robinhood can help with investing in your preferred stocks.

Robinhood has no commission fees, which can make it easier to purchase shares or ETFs in the cannabis sector. Plus, you can get your first stock for fee.

With features like automatic investing, in-app guides and 24/7 access to their customer service team, Robinhood also makes it simple for beginners to diversify their portfolios. How it works is simple: Just download the app and fill out an application form to open an account.

Plus, you don’t need to have a huge bank account to get started. The app allows you to buy fractional shares for as little as $1, making it accessible to invest in a wide range of stocks without breaking the bank.

Once your application is approved, you can transfer funds to your account and start investing right away.

While no investment is without its dangers, cannabis is inherently risky because it’s not a mature industry. Reclassification could unlock billions, but the timeline for federal legalization or banking reform is unknown. Investors should be prepared for long stretches of uncertainty.

Reclassification of marijuana would represent one of the most significant federal shifts in cannabis policy.

For businesses, it could unlock billions in tax savings and research opportunities. For investors, it could create new opportunities — but also plenty of risk.

As the Trump administration weighs its decision, the cannabis industry and Wall Street alike are bracing for what could be a historic move.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Kansas Legislative Research Department (1); ABC News (2); Grand View Research (3); PBS (4); The National Sheriffs’ Association (5); Gallup (6); Yahoo Finance (7)

This article originally appeared on Moneywise.com under the title: Trump rewriting federal marijuana regulations could unlock billions for the US economy — what you should know

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.