Marijuana stocks spun higher in market trade Friday, rallying on reports President Donald Trump aims to loosen federal restrictions on marijuana. Plans call for cutting oversight of marijuana products to the same level as some ordinary prescription painkillers.

Key Takeaways Weed stocks dropped Monday afternoon, reversing early gains on hopes President Trump could soon issue an executive order reclassifying marijuana. An expected reclassification from a Schedule I to a Schedule III drug would help companies in the sector reduce their taxes and relax banking restrictions.

Cannabis industry observers believe it is increasingly likely that President Donald Trump will soon sign an executive order directing federal agencies to complete the marijuana rescheduling process. But multiple reports indicate that the directive could also contain additional components touching on cannabis business banking access and Medicare coverage for CBD.