If you pay attention to cannabis policy, you’re probably feeling the whiplash right now. Hemp will be banned. But it might not be enforceable. But states might create their own laws to regulate it.
Maine and Massachusetts are both facing efforts to repeal their state-legal cannabis markets.
To top it off, we’re now hearing that the Trump administration may soon make a decision about rescheduling cannabis. (But we’ve heard that one before.)
Here’s what we know
The Washington Post reported that six people familiar wi…
If you pay attention to cannabis policy, you’re probably feeling the whiplash right now. Hemp will be banned. But it might not be enforceable. But states might create their own laws to regulate it.
Maine and Massachusetts are both facing efforts to repeal their state-legal cannabis markets.
To top it off, we’re now hearing that the Trump administration may soon make a decision about rescheduling cannabis. (But we’ve heard that one before.)
Here’s what we know
The Washington Post reported that six people familiar with the administration’s discussions have indicated that President Trump is expected to push the government to reschedule cannabis from a Schedule I to a Schedule III controlled substance.
The sources spoke anonymously, as they were not authorized to speak publicly about the topic. Four of those sources claimed Trump spoke with House Speaker Mike Johnson—who reportedly opposed the idea—about issuing an executive order to reclassify the drug.
This phone call reportedly came after Trump discussed the matter with health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Mehmet Oz.
A source familiar with the matter told CNBC that Trump is expected to issue an executive order as early as Monday.
Schedule I to Schedule III
If Trump follows through with the executive order, he’d redirect federal agencies to reclassify cannabis to a Schedule III drug from a Schedule I. Under its current schedule, cannabis is in the most tightly regulated drug category and considered to have no medical uses. Yep, even though most of the country has *some *form of legal medical marijuana, the plant is still considered to have no medical benefits under its current classification.
Schedule III is a much more relaxed category. It recognizes that the drug has accepted medical uses and a lower potential for abuse.
The potential order would NOT federally legalize cannabis. It would just move it to a less regulated category. This would ease the tax burden on operators who aren’t allowed to write off business expenses related to Schedule I and II drugs because of the pesky Section 280E of the Internal Revenue Code.
We’ve Been Here Before
While weed stocks soar ahead of the potential executive order, let’s not forget that we’ve been here before. In August, the Trump administration signaled that it was reviewing a proposal to move cannabis from Schedule I to Schedule III, with a decision that was expected to arrive in “weeks.”
In May of last year, former President Biden announced his plan to reschedule cannabis from a Schedule I to Schedule III controlled substance. (Is there an echo in here?)
Earlier in 2024, the Department of Health and Human Services concluded that cannabis is less harmful than other drugs, has medical benefits, and should have looser federal restrictions. Their review came at the request of Biden, who instructed the organization to examine the available research and provide new recommendations back in 2022.