TLDR
- FDA announced it will not pursue enforcement actions against hemp-derived oral CBD products under certain conditions
- Marijuana sector ETF surged 16% for the week, marking the best performance of 2025
- Major players Tilray, Canopy Growth, and Curaleaf experienced significant share price increases on Thursday
- The announcement follows President Trump’s executive action rescheduling cannabis to Schedule III in December
- Industry experts note the directive remains limited and doesn’t establish comprehensive regulatory guidance
Major cannabis companies experienced their most impressive weekly performance of 2025 following the FDA’s announcement regarding relaxed enforcement on CBD products. The development drove substantial gains across the marijuana sector and positioned it for its strongest week since December’s rally.
In a Wednesday letter, FDA Commissioner Marty Makary stated the agency would refrain from enforcing specific sections of the Federal Food, Drug, and Cosmetic Act against oral hemp-derived products solely due to their CBD content. This enforcement discretion covers products marketed as dietary supplements and those administered to patients under medical supervision.
CBD, short for cannabidiol, is a non-intoxicating component extracted from cannabis plants. Consumers utilize it for various wellness applications, and it appears in numerous health and lifestyle products.
The marijuana stock rally actually commenced Tuesday, preceding the White House and FDA’s launch of a four-meeting series with industry participants to address CBD compliance and enforcement strategies.
This FDA stance complements President Trump’s December executive action that reclassified marijuana from Schedule I to Schedule III in federal drug classifications. That directive also instructed the FDA, National Institutes of Health, and Centers for Medicare and Medicaid Services to create pathways for broader CBD access in medical contexts.
Following the December executive order, cannabis stocks experienced a temporary surge before retreating. The industry continues to struggle with challenges including limited banking services, stock exchange listings, and cross-state commerce restrictions stemming from federal regulations.
Tilray Brands
Tilray emerged as a standout performer during the week. The company’s shares climbed 6.7% in Thursday’s session alone and ranked among the sector’s highest by dollar volume traded. The enterprise conducts research, cultivation, processing, and distribution of medical marijuana across numerous nations including Canada, Germany, Australia, and Argentina.
Canopy Growth
Canopy Growth advanced 2.6% during Thursday trading. The enterprise distributes cannabis and hemp offerings for both adult-use and medical applications throughout the US, Canada, Germany, and additional global markets. The company also operates its Storz and Bickel division, which manufactures cannabis vaporization devices. Canopy appeared alongside Tilray as one of the week’s most actively traded marijuana stocks.
Canopy Growth Corporation, CGC
Curaleaf Holdings
Curaleaf delivered the most impressive single-day performance among prominent cannabis names Thursday, surging 8.4%. The company focuses its operations on the United States cannabis market. Investor attention has remained focused on Curaleaf shares as market participants monitor potential federal policy changes that might enable interstate cannabis commerce.
The AdvisorShares Pure US Cannabis exchange-traded fund climbed 4.6% Thursday and posted a 16% weekly gain, positioning it for its strongest weekly showing since December.
An industry expert observed the policy remains “narrowly scoped” and falls short of establishing a comprehensive framework for the wider marijuana industry, urging Congressional action for more substantial reform.
The FDA conducted its initial stakeholder meeting regarding CBD policy Wednesday, with three additional sessions planned in the continuing series.
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