President Donald Trump signed an executive order directing federal agencies to reclassify marijuana from Schedule I to Schedule III, easing long-standing restrictions on the drug.

The move recognizes cannabis as having accepted medical use and a lower potential for abuse, similar to ketamine and certain pain medications.

Trump highlighted that the change would benefit patients with chronic illnesses, veterans, and older Americans suffering from debilitating conditions.

The Centers for Medicare and Medicaid Services plans to launch a pilot program in April providing certain seniors with doctor-recommended CBD products, CNBC has reported.

Analysts say the reclassification could be a financial boost for the cannabis industry, allowing standard expense deductions, banking access, and attracting institutional investment, though the order does not legalize recreational marijuana.