What RFK Jr.'s Confirmation as Health Secretary Could Mean for Cannabis Investors

The U.S. Senate’s confirmation of Robert F. Kennedy Jr. as Secretary of Health and Human Services (HHS) has sparked cautious optimism in the cannabis industry, even as concerns linger about his stance on marijuana reform.

Despite Kennedy’s previous support for federal cannabis decriminalization, his confirmation hearings offered little clarity on how he would approach the ongoing rescheduling process. However, investors should take note of key developments that could impact the trajectory of the cannabis industry under his tenure.

RFK Jr.’s Position on Cannabis: Uncertainty Remains

While Kennedy has expressed openness to cannabis reform in the past, his confirmation process revealed a more cautious approach:

• During his hearings, he avoided direct support for rescheduling, instead stating that he would “review the reasoning” behind the FDA’s recommendation to move cannabis from Schedule I to Schedule III.
• He reportedly assured Republican Senator Pete Ricketts—one of the Senate’s most vocal cannabis opponents—that he would “follow the science on the harms of marijuana.”
• His hesitancy raises concerns about whether the cannabis industry can count on a clear path forward regarding federal policy changes.

For investors, this signals a potential slowdown in regulatory momentum, despite the broader shift toward reform.

The Rescheduling Process: What to Expect

Under the Biden administration, the HHS determined that cannabis has a “currently accepted medical use,” setting the stage for the Department of Justice (DOJ) to recommend rescheduling. While Kennedy now leads HHS, his influence over this process is limited. The Drug Enforcement Administration (DEA) ultimately holds the authority to determine marijuana’s classification under the Controlled Substances Act.

That said, a Trump-led administration presents new uncertainties. Although Trump expressed support for rescheduling during his campaign, he has yet to address the issue since taking office. The extent to which his administration prioritizes cannabis reform remains unclear, leaving investors in a wait-and-see position.

Industry Reactions: A Shift in Perspective?

Despite the ambiguity surrounding Kennedy’s stance, some industry leaders view his confirmation as a sign of shifting attitudes toward alternative health solutions, including cannabis.

Emily Paxhia, co-founder and managing director of Poseidon Asset Management, pointed out that Kennedy’s appointment reflects a broader cultural shift in how Americans view health and wellness.

“RFK being confirmed demonstrates that the American perspective on ‘health’ is shifting to a less conventional and more exploratory mindset,” Paxhia wrote on LinkedIn. “Cannabis sits squarely in the middle of this shift in the health zeitgeist.”

This perspective suggests that, regardless of short-term regulatory uncertainty, the long-term trajectory for cannabis remains strong as mainstream acceptance continues to grow.

Investor Takeaways: Navigating the Uncertainty

• Policy Watch: Keep an eye on how Kennedy navigates cannabis policy within HHS, particularly his review of rescheduling recommendations.
• Trump’s Next Move: The real determinant of cannabis reform will be the Trump administration’s stance, particularly the DOJ and DEA’s final decision on rescheduling.
• Long-Term Market Confidence: While short-term policy decisions remain in flux, the overall trend toward legalization and market growth continues. Companies positioning themselves for long-term federal reform could see significant upside.

With Kennedy now in place at HHS, cannabis investors will need to monitor his actions closely. While he may not drive immediate change, his role will shape the broader regulatory landscape that could impact the industry for years to come.