Trulieve Cannabis and other marijuana stocks tumbled after the Drug Enforcement Administration paused pending rescheduling proceedings for a case that could federally recognize cannabis for medical use.

A DEA administrative law judge paused the proceedings Tuesday, citing a need to address a report from the Government Accountability Office highlighting gaps in federal drug scheduling policies. With a response due by Oct. 13, the expected decision timeline shifts to the first half of 2027 from late 2026.

The case aims to move cannabis to a Schedule III drug from a Schedule I, which could recognize its medical value federally and ease research hurdles.

The news rattled investors, sending shares of Trulieve Cannabis down 16% to $10.45 Wednesday. The stock was on track to have its worst day since Dec. 18, 2025, when shares fell 23%, according to Dow Jones Market Data.

Other cannabis stocks took a hit. Curaleaf Holdings dropped 10%, Tilray Brands fell 4.2%, and Green Thumb Industries slumped 11%.

Cantor Fitzgerald analyst Gabie Ingoglia noted Wednesday that the DEA's delay is purely procedural instead of a formal rejection of rescheduling efforts. The firm reaffirmed its Overweight rating on Trulieve Cannabis stock with a $15 price target.

The procedural delay has no effect on Trulieve Cannabis' medical-use business, which remains completely active.

The setback, however, could pressure shares in the short term, said Ingoglia. But that shouldn't necessarily worry investors about future growth.

Ingoglia noted that HSBC won't change growth estimates for Trulieve Cannabis, which became the first U.S. business that directly cultivates and sells the physical cannabis plant to trade on a major U.S. stock exchange when it debuted on June 10, 2026. The firm anticipates revenue from Trulieve Cannabis of about $1 billion in fiscal 2026 and $952 million in 2027. The figures reflect the company's core medical-use operations.