Cannabis Stocks Surge After Trump Champions CBD for Seniors — But Is It Another False Dawn?

LOS ANGELES- Cannabis and hemp company shares surged Monday after President Donald Trump publicly endorsed cannabidiol (CBD) as a potential game changer for senior healthcare.

His remarks, shared on Truth Social, called for CBD to be integrated into the healthcare system and even covered under Medicare — sparking renewed optimism for federal reform.

But for an industry that has seen its hopes rise and fall on political headlines, the question remains: will this time be different, or just another false dawn?

Trump’s Comments Spark Market Frenzy

In his statement, Trump highlighted hemp-derived CBD’s potential to improve quality of life for older Americans, reduce reliance on prescription medications, and lower long-term healthcare costs. He framed CBD as a wellness tool rather than a recreational product, aligning it with traditional senior health priorities like pain relief, mobility, and stress management.

The market reaction was immediate and dramatic:

• Tilray Brands (TLRY) surged more than 40% in intraday trading.
• Canopy Growth (WEED) rose nearly 18%.
• Cronos Group (CRON) and Aurora Cannabis (ACB) both posted strong double-digit gains.
• The AdvisorShares Pure U.S. Cannabis ETF (MSOS) jumped 20%, putting it on track for its best quarter on record, with projected gains over 70%.

Ben Laidler, head of equity strategy at Bradesco BBI, explained:

“Any support from a figure like Trump goes a long way for this beleaguered sector, where confidence has been in short supply.”

Why Trump’s Comments Still Matter

Some industry veterans remain cautious, pointing to false dawns under Trump, where past statements sparked optimism but failed to produce meaningful regulatory change. Still, these latest remarks are significant because of their political and economic ripple effects — even before any laws are changed.

President D. J. Trump

Appealing Directly to Senior Voters
Trump positioned CBD as a senior healthcare solution, strategically targeting one of the most powerful voting blocs in U.S. politics. Seniors are also the fastest-growing group of cannabis consumers, especially for non-psychoactive products like CBD. By linking CBD to wellness, disease management, and reduced dependence on prescription drugs, he reframed cannabis as a mainstream healthcare issue, not a partisan one.

Triggering Immediate Market Gains
Markets respond to sentiment as much as substance. Trump’s endorsement fueled a massive rally that not only benefited investors but also gave cannabis companies greater access to capital, fueled M&A discussions, and emboldened multistate operators to plan expansion strategies, even in the face of ongoing regulatory uncertainty.

Mainstream Legitimization
Cannabis reform has long been seen as a progressive cause. Trump’s comments provide political cover for conservative lawmakers and healthcare providers to engage on the issue without fear of backlash. This could open the door for bipartisan progress, particularly around CBD, which enjoys broader public acceptance than THC.

Shaping the Federal Agenda
The remarks also add political pressure to agencies already reviewing cannabis-related rules. The DEA is considering whether to move cannabis from Schedule I to Schedule III after a recommendation by HHS under the Biden administration. The FDA is weighing how to regulate CBD products and improve consistency in labeling and quality. Discussions are underway about integrating alternative therapies like CBD into Medicare and Medicaid, with potential cost-saving implications.

A Record of False Dawns

While Trump’s words sent stocks soaring, industry leaders remain cautious. During his first term, Trump made several statements supportive of cannabis reform — only for them to fizzle without concrete results. In 2018, Trump signed the Farm Bill, which legalized industrial hemp and sparked the initial CBD boom. However, he did not act on broader reform, leaving marijuana classified as Schedule I under the Controlled Substances Act. Key legislation, such as the SAFE Banking Act, repeatedly stalled during his term. Trump’s past comments on federal legalization were often vague or contradictory, creating uncertainty and whiplash for investors.

“We’ve seen this movie before — stocks spike on Trump headlines, then fade when no policy materializes.”

Contrast: Progress Under the Previous Administration

By comparison, the Biden administration — though cautious and incremental — delivered measurable progress that moved the industry forward.

Rescheduling Review: In 2023, the Department of Health and Human Services formally recommended moving cannabis from Schedule I to Schedule III, a historic acknowledgment of its medical potential.

Federal Pardons for Possession: Biden issued federal pardons for thousands with non-violent cannabis possession convictions, setting a precedent for reform.

Research Funding Expansion: Federal agencies increased funding for medical cannabis research, particularly for veterans and seniors dealing with chronic pain and PTSD.

While Biden stopped short of full legalization, these actions gave the industry regulatory clarity and created a foundation for further reform.

Industry Challenges Persist

Even with Trump’s high-profile comments and a short-term market rally, major hurdles remain. CBD products still lack consistent federal regulation, creating quality and labeling concerns. Some lawmakers continue to target even low-THC hemp products, threatening parts of the CBD industry. Cannabis stocks remain speculative, swinging on headlines rather than fundamentals. Even if the DEA moves forward on rescheduling, the process involves public comment periods and judicial review, meaning implementation could take months or years.

Outlook: Policy or Politics?

For now, Trump’s endorsement has reignited hope and speculation, but history suggests caution. The cannabis industry will be watching closely for signs of follow-through, such as a formal rescheduling announcement by the DEA or DOJ, legislative movement on SAFE Banking or Medicare CBD coverage, and concrete proposals from Trump’s allies in Congress.

Until then, the rally sparked by Trump’s comments may prove to be another temporary spike in a volatile market, rather than the dawn of lasting reform.

“This moment has the potential to be transformative,” said one industry executive, “but we’ve been burned before. Actions, not words, will determine whether this momentum leads to real change.”