Trump’s Rescheduling Move Could Change the Cannabis Industry Overnight
Acting U.S. Attorney General Todd Blanche signed an order Thursday to reclassify state-licensed medical cannabis as a less dangerous substance.
The order intends to shift the designation of licensed medical cannabis from Schedule I –the most restrictive category of drug classification for substances that have no medical value and potential for abuse including heroin, to the less restrictive Schedule III for substances, or chemicals, defined as drugs with a moderate, to-low potential for physical and psychological dependence alongside Tylenol with Codeine, ketamine, anabolic steroids, and testosterone.
The scheduling reclassification does not legalize cannabis use under federal law, but it will impact the 40 states that have approved medical cannabis programs. The directive for rescheduling also provides a tax incentive to state-licensed medical cannabis operators.
Expedited Hearing
Blanche said that the order calls for an “expedited hearing” to reschedule marijuana and state-licensed marijuana, approved by the Food and Drug Administration (FDA), from Schedule I to Schedule III, Thursday in a post on social media platform X.
“These actions will enable more targeted, rigorous research into marijuana’s safety and efficacy, expanding patients’ access to treatments and empowering doctors to make better-informed healthcare decisions,” the acting attorney general wrote.
The Drug Enforcement Administration (DEA) will hold an administrative hearing beginning on June 29 to consider this rescheduling request.
“Under the direction of President Trump and Acting Attorney General Blanche, DEA is expeditiously moving forward with the administrative hearing process — bringing consistency and oversight to an area that has lacked both,” DEA Administrator Terry Cole said in a Thursday statement.
The order will expedite the process by which state-licensed medical marijuana operators register with the DEA. It also affirms that cannabis researchers will not face legal repercussions for experiments using state-licensed cannabis.
Last December, President Trump signed an executive order directing officials to expedite the rescheduling process in a push to expand cannabis research.
The president stressed at the time that he was not lifting the federal ban on cannabis, which has been effectively in place since the passage of the Marihuana Tax Act in 1937.
He also cautioned of the negative effects of adult use marijuana use during the signing ceremony for the executive order last year.
Erin Gorman-Kirk, Cannabis Ombudsman to the state of Connecticut said this, “As the only Cannabis Ombudsman in the nation, I can tell you this rescheduling matters for patients, for research, and for the integrity of state programs that have been operating in the federal gray zone for too long. This is a floor, not a ceiling, and we’ll be watching very closely to ensure patients see the real benefits. As one of only 25 designated parties to the Biden administration’s rescheduling efforts, I am thrilled that Connecticut has been in the room, and behind the scenes, during this historic process.”
Adult-Use Still Schedule I
Today’s reclassification only pertains to FDA-approved marijuana products, including one cannabis-derived drug product, Epidiolex (CBD), and three synthetic THC-related drugs, Marinol, Syndros, Cesamet, for specific severe conditions.
Cannabis products regulated under qualifying state medical cannabis licenses are also included. However adult-use (recreational) cannabis remains Schedule I. The June 29 hearing will occur to facilitate the administration’s two-pronged approach: reschedule the covered medical categories immediately, then a formal proceeding on the broader question of the federal status of cannabis. The hearing will consider whether cannabis outside the scope of the categories covered by this order should also move to Schedule III.
Industry Executives Weigh In
The announcement has sent shockwaves through the industry and beyond as operators, founders, and executives weigh in.
“Given the nuances of the announcement around Schedule III and the subsequent order, we are taking a thoughtful and comprehensive approach to fully analyze all aspects and potential implications,” said Dr. Roz McCarthy, Founder and CEO of M4MM and Black Buddha Cannabis. “This is a significant development with far-reaching impact across policy, access, research, and industry dynamics. We will be issuing a more robust and informed statement once our analysis is complete.”
This is a significant development with far-reaching impact across policy, access, research, and industry dynamics. We will be issuing a more robust and informed statement once our analysis is complete.” Focusing on the financial impact of rescheduling, Bryan Gerber, CEO and Co-founder of HARA Supply said,“Relief from 280E restores essential working capital to the sector, allowing responsible businesses to reinvest in innovation, job creation, and higher-quality products for consumers.”
“The headlines says, ‘rescheduled.’ What that means in plain English is the Federal Government just officially admitted that medical marijuana has accepted medical use,” said Pamela Epstein. “That sounds simple, but it has never been true under federal law until today. It is generally historic but also incomplete. Both of those things are true simultaneously.”
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“Today’s announcement from the Trump administration has the potential to meaningfully reduce barriers to research and supports the development of evidence-based medicinal applications, moving federal scheduling policy in the right direction,” said Samuel Brill, CEO & Director of Ascend Wellness Holdings, an multi-state operator (MSO) and consumer packaged goods (CPG) company. “While rescheduling is not legalization, and it does not resolve all structural challenges in the industry, it is an important step toward a more transparent and accountable market that supports compliant operators. We believe a well-regulated, research-driven cannabis industry benefits consumers, communities, and public health, and remain committed to operating within this evolving framework to help realize the industry’s full potential
“Today’s rescheduling movement is for the people who took the hits from cannabis prohibition, whether that was charges, lost jobs, or just the stigma that came with it,” said Seth Sznapstajler, Co-Founder of sports-nostalgia inspired Sluggers Hit. “We don’t forget where this started. We’re just going to keep building what comes next.”
As a legacy-to-legal brand with over two decades in the industry, California-based Sunrise Mountain Farms is excited to continue to cultivate quality cannabis under the new classification which will open up avenues to much-needed medical research for a plethora of women’s health issues, said Founder and award-winning cultivator Lorelie Sandomeno. “While this forward momentum is a step in the right direction, the ultimate goal is for cannabis descheduling entirely. While this move flings open the door for MSOs and Big Pharma to thrive, I hope that craft operators are also positively impacted and supported by this new designation.”
“We truly appreciate that the federal government has moved the ball forward on rescheduling,” said Andrew Berman, CEO of Arcana Collective. “While today’s announcement has the potential to unlock improvements across taxation, banking access, investment activity, and research expansion, it is by no means the finish line, as broader structural constraints impacting the industry will persist until comprehensive federal legalization is achieved. Arcana Collective welcomes all such progress, and we look forward to further action from Washington.”
Berman predicts this step will pave the way for future releases of unique cannabis genetics and offer a library of seeds, slips and tissue culture clones, as well as genetic licensing opportunities.
Highlighting past administration misses, Cannabis & Tech Today Editor-in-Chief Charles Warner said, “This is a huge fumble by Democrats who historically have led on cannabis but didn’t get it done during the Biden administration.”
Looking at research and federal oversight, Jeff Adams, CEO and Founder of XRpure, said, “Reclassification would ease many of the administrative barriers that slow research and open the door to more funding of scientific studies of the plant’s medical applications.”
Nicolas Guarino Co-Founder and CEO of Jaunty noted the financial impact of rescheduling and said, “Rescheduling would allow cannabis businesses to be taxed like any other legal industry, freeing up billions of dollars that can be reinvested into operations, innovation, and long-term growth.”
Centering the need for equity alongside reform, CEO and Co-Founder of Azuca, Kim Sanchez Rael said,“Policy reform is hollow without justice for those harmed by prohibition and disparate enforcement. We welcome rescheduling, but we have a lot more work to do”
Focusing on how rescheduling can help craft operators, not only MSOs, Christopher Louie, CEO of Made In Xiaolin, said, “From what I understand, rescheduling helps us operate more like a real business, even without full legalization. Removing IRS tax code 280E takes a lot of pressure off small businesses, and it could also help with banking, which has been inconsistent for a lot of us. It doesn’t make things easier, it just changes the landscape. Bigger players may have a clearer path in, so for us it’s about staying focused on the craft and the experience.” Cameron Clarke of Sunderstorm emphasized progress and remaining gaps and said, “Today’s rescheduling is the first badly needed step toward cleaning up one of the most convoluted regulatory landscapes in American business. The immediate elimination of 280E is consequentially vital. However, banking reform is still unfinished, interstate commerce has not been resolved.”
The Future of Rescheduling
Rescheduling marks meaningful progress, but it is only one step toward the broader structural change the industry still needs. Reducing the financial and regulatory burdens on operators and retailers remains critical, particularly as businesses continue to navigate a fragmented and often contradictory system. At the same time, any reform must be paired with a sustained effort to address the long-term harms of the War on Drugs, an issue that rescheduling alone does not resolve. Still, the shift represents a tangible move toward normalization, one that could ease stigma and unlock new opportunities across the industry.
Looking ahead, stakeholders should also anticipate and prepare for renewed opposition from familiar critics of legalization. Engaging with those concerns, while continuing to push for pragmatic, data-driven reform, will be essential to maintaining momentum. If this moment is to translate into lasting progress, the industry will need to balance optimism with strategy, ensuring that incremental wins build toward comprehensive, equitable change.