Shares of cannabis-linked companies jumped again in morning trading on Wednesday, as US President Donald Trump said he was considering reclassifying marijuana as a less dangerous drug — giving the sector a much needed boost.

Tilray rose 16%; Canopy Growth rose 4%; SNDL rose 3%; Aurora Cannabis rose 2%.

The Wall Street Journal first reported on Friday that Trump spoke on cannabis reclassification during a fundraising event, citing people familiar with the matter. A new scheduling from the administration could also reignite hope for a broader federal legislation push that is key to unlocking value in the sector.

Cannabis is currently labeled as a Schedule 1 drug — putting it into a category that also includes substances like heroin and LSD. Former Florida Republican representative Matt Gaetz said in a March op-ed that the Trump administration would bring “meaningful change” in reclassifying cannabis to a Schedule III drug, which puts it on the same level as anabolic steroids and the medication Adderall.

“Over the long-term, a rescheduling of cannabis would likely lift the entire sector by bolstering research, reducing stigma, improving access to capital, and opening up a large addressable market,” TD Cowen analyst Derek Lessard wrote in a Monday note.

He rates Canadian cannabis producer Aurora Cannabis a buy, but reminded investors the company has no known plans to enter the US market. Even if the US approved a rescheduling of marijuana’s status, it wouldn’t likely have near-term effects on companies without US operations, he warned.

Rescheduling is also a separate issue than federal legislation. The US operates as a state patchwork system as far as legalization goes and progress on legalizing marijuana on a federal level has been slow. The sector trades well below its 2021 heyday, when rates were lower and investor enthusiasm was at its peak.