By Nate Wolf

Cannabis stocks rose sharply Thursday as the Food and Drug Administration said it would take a more lenient approach to regulating cannabidiol, or CBD, products.

The FDA won't enforce certain provisions of the Federal Food, Drug, and Cosmetic Act for hemp-derived oral products solely because they contain CBD, Commissioner Marty Makary said in a letter Wednesday. The approach applies to items marketed and labeled as dietary supplements and provided to insurance beneficiaries under the direction of a physician.

CBD is a non-psychoactive cannabis compound used for various healthcare needs.

Cannabis stocks jumped for a third straight day. Tilray Brands stock rose 6.1%, Canopy Growth was up 2.5%, and Curaleaf Holdings jumped 4.9%. The AdvisorShares Pure US Cannabis exchange-traded fund rose 4.9% and is up 16% this week, putting the fund on track for its best week since December.

The spike began Tuesday, a day before the White House and FDA began a series of four meetings with industry stakeholders to discuss CBD compliance and enforcement policy.

Makary's letter follows President Donald Trump's executive order in December reclassifying marijuana as a lower-risk Schedule III drug. As part of that order, Trump directed the FDA, National Institutes of Health, and Centers for Medicare and Medicaid Services to develop research methods to expand access to CBD products for medical use.

Cannabis stocks briefly rallied around the December executive order before sinking back to previous levels. The companies have for years had trouble accessing banking services, securing ordinary stock listings, and doing business across state lines.

The move signals that a regulated, national marketplace for cannabinoids, which also include the psychoactive compound THC, is "both achievable and appropriate," said Thomas Winstanley, general manager at the cannabis marketplace Edibles.com.

"At the same time, the policy remains narrowly scoped and stops short of establishing a durable framework for the broader market," Winstanley added in emailed comments, calling for congressional action to codify the new principles.

Write to Nate Wolf at nate.wolf@barrons.com

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April 02, 2026 15:34 ET (19:34 GMT)

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