Trump Advocates CBD for Medicare Inclusion, Igniting Cannabis Stock Surge; Tilray Brands Soars 60%

TradingKey - On Monday, September 29th, Donald Trump posted a video on Truth Social endorsing the health benefits of cannabidiol (CBD) for seniors and advocating for its inclusion in Medicare coverage. This announcement sent U.S. cannabis stocks soaring.

Medicinal cannabis company Tilray Brands (TLRY.US) surged as much as 60.87%, reaching a 13-month high with a market capitalization surpassing $2 billion. Canadian cannabis grower Canopy Growth (CGC.US) saw a 17.16% jump, while industry peer Cronos Group (CRON.US) rose approximately 13%. Cannabis-related ETFs also experienced strong gains; the AdvisorShares Pure US Cannabis ETF (MSOS.US) climbed 28.16%, with a year-to-date increase of 38.58%. The Amplify Alternative Harvest ETF (MJ.US) spiked up to 26%.

Adam Stettner, CEO of California-based cannabis business lender FundCanna, remarked on the historic nature of a sitting president publicly pushing for cannabinoids to be covered under Medicare.

Analysts suggest Trump's comments bring renewed hope to the cannabis sector, particularly amidst the uncertain regulatory environment of the past year. Despite the gains on the 29th, the AdvisorShares Pure US Cannabis ETF still reflects a 25.32% decline over the last year.

Thomas Winstanley, Vice President of cannabis trading site Edibles.com, emphasized the significance of Trump's statement, particularly as debates on cannabis reach a fever pitch.

According to Bloomberg, the U.S. Congress is currently discussing tightening federal cannabis-related laws, with some Republican lawmakers advocating for stricter regulations on cannabis products.

In August, Trump publicly considered reclassifying cannabis from a Schedule I to a Schedule III controlled substance—permitting medical use—and pledged to make a decision in the coming weeks, though no announcement has yet been made.

Under current law, while individual states have increasingly legalized recreational cannabis use, it remains illegal at the federal level. Commercial cannabis cultivation is legal but lacks recognized medical utility due to its Schedule I classification.

Stettner highlighted the cannabis industry's need for a comprehensive federal framework to protect compliant businesses and end the structural penalties faced by legitimate operators daily. According to federal tax code Section 280E, businesses selling Schedule I or II substances cannot deduct business expenses from federal income taxes like other companies, resulting in a heavy tax burden.