April 30 (Reuters) - The U.S. Department of Justice on

Tuesday moved to make marijuana use a less serious crime, a

source familiar with the matter said.

If finalized, the policy change could potentially be the

biggest shift in federal cannabis policy in 40 years.

Shares of cannabis firms surged following the news. Stocks

of pot companies such as Tilray, Trulieve Cannabis Corp ( TCNNF )

, Green thumb Industries ( GTBIF ) were up over 20% in

late afternoon trading.

The Department of Justice, which oversees the Drug

Enforcement Administration, recommended that cannabis be

classified as a so-called schedule three drug, with a moderate

to low potential for physical and psychological dependence,

instead of schedule one, which is reserved for drugs with a high

potential for abuse.

The proposal is being sent to the White House Office of

Management and Budget for review and to finalize the rule-making

process, the source said.

The DEA did not immediately respond to a Reuters request for

comment on the recommendation, first reported by the Associated

Press.

The shift, however, would not legalize marijuana outright

for recreational use, according to AP.