U.S. President Donald Trump's administration is looking to reclassify marijuana as a less dangerous drug, a shift that could ease criminal penalties and reshape the pot industry by lowering tax burdens and making it easier for firms to secure funding.

Last year, the Justice Department proposed reclassifying marijuana from a Schedule I drug, a category that includes substances like heroin and LSD, to a less dangerous Schedule III substance, which encompasses drugs such as ketamine and certain anabolic steroids.

Cannabis stocks and ETFs skyrocketed after Trump hinted at reclassifying marijuana. Tilray surged 35% in 2 days. Other top performers included Trulieve, Tilray, Curaleaf, and Canopy Growth. This shift could ease federal regulations and improve the industry's growth potential.