his feels more like an exciting beginning rather than anything final.
While everyone is jumping to big declarations, I’m thinking about these details that will ultimately decide the impact:
❓ How long does it take to for Schedule III to be finalized? Trump’s order *does not* reschedule cannabis, it directs his agencies to do it. Bureaucrats and lawsuits could still slow this down.
❓ How do banking institutions react to Schedule III? Do expensive business accounts and de-banking become a thing of the past? This type of normalization will have a far greater impact on operations.
❓ Does this energize investments and M&A within state legal markets? I’ve heard for years that it’s nearly impossible to raise capital, even if you have an amazing idea that’s already working. This could change that.
❓ What research projects get launched? This time horizon is more like 5 or 10 years out, but it’s also the most exciting thing about Schedule III. We could finally have answers to the biggest questions in medical cannabis.
1. Marijuana has not yet been rescheduled, although the President’s order indicates that it will be soon.
2. When it happens, enjoy the tax relief but don’t go crazy with irrational exuberance. It can still get worse before it gets better.
3. US out of Venezuela.
Just a friendly note to all that although the press conference on federal marijuana rescheduling has concluded, we still don’t have the exact language of the President’s signed Executive Order. It will be important to read that before drawing conclusions, especially since actions from a number of other federal agencies would be needed to reschedule marijuana, to facilitate changes to the research approach, to provide for a pilot program through CMS for reimbursement of certain cannabinoid products, and many of the other things mentioned in the press event. The details and fine print will matter here in terms of implementation…
Here’s the page for Executive Orders: https://lnkd.in/gmmgWhcJ [I am just continuing to hit refresh]…
Here’s the press conference (in case you missed it): https://lnkd.in/gZP38fES
‼️While others will comment on the historic moment that is rescheduling to Schedule 3, today the President’s Executive Order (EO) just threw a life raft to the hemp industry to undo the looming “hemp ban” (links to EO and fact sheet in comments)‼️
Statement (Stmt) and my translation:
Stmt: This Administration is committed to work expeditiously to provide clarity and access as appropriate
☑️Translation: Acknowledgement hemp regulations are currently messy and need clarity ASAP
Stmt: Hemp derived cannabinoid products have shown potential to improve patient systems for common ailments
☑️Translation: There are therapeutic benefits to hemp products
Stmt: The amount of THC included with hemp derived cannabinoid products can effect pain treatment efficacy and adverse events
☑️Translation: The entourage effect is real and you need both THC and CBD to feel something
Stmt: The Assistant to the President and Deputy Chief of Staff for Legislative, Political, and Public Affairs will work with the Congress to update the statutory definition of “final hemp-derived cannabinoid products” that was just passed in November to allow Americans to benefit from access to appropriate “full-spectrum CBD products” while preserving the Congress’s intent to restrict the sale of products that pose serious health risks
☑️Translation: White House officials will work with Congress directly to fix the definition of “final hemp-derived cannabinoid products” to increase the milligram number to a moderate number that still bans “high dose” products
Stmt: Exec departments and agencies shall be consulted to develop a regulatory framework for hemp-derived cannabinoid products
☑️Translation: A blanket ban is not viable and a regulatory framework is needed which makes hemp-derived cannabinoid products lawful
Stmt: The framework shall include an upper limit of milligrams of THC per serving and per container and a CBD to THC ratio requirements
☑️Translation: Congress should set a milligram cap for THC per serving and per container and the products should be ratioed containing both CBD and THC
Stmt: The Secretary HHS, the Commissioner FDA, the Administrator of the CMS, and the Director of the NIH shall develop research methods and models utilizing real-world evidence to improve access to hemp-derived cannabinoid products in accordance with Federal law and to inform standards of care
☑️Translation: The White House does not want to wait for formal clinical trials, real world information and data from consumers and customers should be used as the basis to create a standard of care
ℹ️ Note: “Full-spectrum CBD products” is not defined in federal or most state laws, but it generally understand to contain 1-5 milligrams of THC per serving, however there is no set limit
⚕️Also announced today is a forthcoming trial program from CMS to allow coverage of cannabinoid hemp products under certain conditions, details to follow
ORDER and WH FACTS PAGE are in comments below.
Link to Dentons Alert: https://lnkd.in/gFZzsUeT
First details about anticipated executive order on cannabis. We will confirm post-signing.
– Direct the attorney general to expedite the completion of the process of rescheduling marijuana to Schedule III of the CSA.
– Direct top White House staff to work with Congress to give patients access to full-spectrum CBD products, “while still restricting the sale and access to products that cause serious and potentially life threatening health risks.”
– Urge Congress to examine updating the definition of hemp to ensure that full-spectrum CBD is accessible to patients—a policy change that could mitigate some concerns in the sector about a recent spending bill Trump signed with provisions that would broadly ban consumable hemp products.
– Direct the U.S. Department of Health and Human Services (HHS) to “develop research methods and models, to utilize real world evidence [and] to improve access to hemp-derived CBD products in accordance with federal law” while informing “standards of care.”
hashtagDentons hashtagDentonsCannabis hashtagCannabisLaw hashtagRescheduling
Hannah King –
What does cannabis rescheduling mean for banking and lending?
Check this out: https://lnkd.in/gCPRbzXU
CTrust
Dotan Y. Melech
Scot Rutledge
Kevin Washburn
Kevin Hart
Heads-up before everyone starts poppin’ champagne 🍾 👀 🛑 Rescheduling via hashtagexecutive order is a signal, not substance.
An executive order is not a law. It does not automatically change hashtagenforcement. It does not free anyone. It can be reversed by the next administration with the stroke of a pen.
hashtagCannabis headlines are loud today. But I’m staying skeptical; because moving cannabis from 1 federal list to another does not end hashtagprohibition.
It does not stop arrests, does not repair harm, does not deschedule the plant. Which is what we want and deserve.
It does not resolve state vs hashtagfederal conflict. And it absolutely does not equal hashtagjustice.
This is why I keep saying the same thing, loudly and without apology:
Decriminalization first. Always. Full descheduling, not reshuffling.
Schedule III still keeps cannabis illegal federally…
Still privileges pharma over people.
Still leaves legacy operators exposed.
Still allows the federal government to criminalize a plant communities have used safely for generations.
If cannabis has medical value, it never belonged on any schedule in the first place.
Real hashtagreform looks like this:
• Full federal descheduling
• hashtagDecriminalization nationwide
• Automatic hashtagexpungement
• Repair before revenue
• People before hashtagprofit
Anything less is policy theater wrapped in a press release… so, yes let’s celebrate “progress” but stay clear-eyed.
Executive orders come and go; Freedom sticks when it’s written into law.
No half-measures: We deserve to be free of this conspiracy against the plant, repression of our medical sovereignty and bodily autonomy.
Free this plant! 🌱 Free the people!
The question I would ask everyone cheering on Trump today. What is fundamentally different about an E.O. encouraging the DEA to do the same thing Biden’s HHS already said they should do?
Why is Trump suddenly a hero when Biden already started the process?
I don’t know who needs to hear this today, but the president can’t unilaterally reschedule cannabis by executive order.
Please don’t spend your tax money.
President Biden requested hashtagcannabis be hashtagrescheduled in 2022. The hashtagFDA and hashtagDEA moved forward with that process, which was well underway, when the new administration took office in January and the process stalled. Trump just issued an Executive Order to reschedule “expeditiously,” as Biden initially directed in 2022.
What does this EO do you ask? Nothing, at least not today. Even if/when the move to Schedule III happens:
⛔ hashtagcannabis will hashtagnot have been hashtaglegalized
⛔ people can and will still go to hashtagjail over cannabis
⛔ hashtagdoctors will still not be able to lawfully hashtagprescribe cannabis
⛔ hashtagEpidiolex will still be the only FDA-approved hashtagdrug from cannabis hashtagplants
What might happen (once it is actually official)?
💰 hashtag280E – cannabis companies *should* get immediate relief and finally be able to take standard business tax hashtagdeductions. HOWEVER, we still don’t know if anything cannabis-related would remain higher than Schedule III (i.e., hashtagTHC, hashtagmarijuana, marijuana hashtagextract). I’m very interested in what federal hashtagtax hashtagcredit programs could be possible under Schedule III.
🔬 reduced barriers for US-based hashtagresearch means hashtagacademic institutions and hashtaghospitals will be able to research cannabis with less restrictions, which could eventually lead to new FDA-approved cannabis-based drugs.
So what happens to hashtagstate-legal programs? No one knows….but they did just remove that appropriations hashtagprotection that had been there for several years….I think this becomes a handout to hashtagBigCannabis and hashtagBigPharma, but leaves small businesses, patients, consumers, and convicts still without relief. Time will tell….
Notably, though, on the hashtaghemp issue, the EO acknowledges the messy state of affairs and directs Congress to address it so hashtagfull–hashtagspectrum hemp remains accessible while prohibiting those products that are alleged to endanger public health. Expect another set of definition amendments for hemp in the next several months….
A lot of talk, a lot of press, not a lot of real action YET.
Wow. There’s a little something here for many aspects of the cannabis industry.
First, contrary to many reports, the President did not reschedule marijuana. He doesn’t have the authority to do that unilaterally. But his order today paves the way for the executive branch to formally reschedule marijuana as a Schedule 3 substance. THIS IS MASSIVE for the marijuana industry and sets the stage for a new era of growth, research, and development a half century in the making.
In what had been reported over the past 24 hours without many details, the hemp industry got a boost from the announcement as well. The President urged Congress to update federal law to allow for the manufacture and sale of CBD and Dr. Oz announced that Americans over 65 will have access to subsidized CBD products. This hemp news has to be read in connection with Congress’ recent decision to effectively ban broad spectrum CBD effective next November. I have already heard from hemp operators keen to get amendments to that law so that federal law aligns with today’s order.
Lots to unpack, and we’ll have a full recap over at Budding Trends.
By Executive Order dated December 18, 2025, President Donald J. Trump directed reclassifying Cannabis from Schedule 1 to Schedule III of the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. §§ 801, Et. Seq(1970) (“CSA”).
As attached Cheat Sheet details, by reclassifying to Schedule III, Marijuana growers, processors, transporters and sellers will cease being encumbered by onerous operating and taxing obstacles to become significantly more profitable, federally-funded Cannabis research will finally occur, and MRB investment should soar.
In short, while not federally decriminalizing/legalizing Cannabis or solving industry’s operational woes (ex., banking), relisting to Schedule III will mean for Cannabis:
•Operators: easing tax burden and lowering operating costs thereby increasing profitability and access to funding;
•Consumers: stabilizing and lowering Cannabis pricing and enabling wider product availability and federally-funded Cannabis research; and
•Investors: via increasing profitability and legitimacy, and reducing perceived federal risk, boost domestic Cannabis companies’ valuations and current returns and spurring new investment.
Background
Defined as “Cannabis sativa L. containing more than 0.3% plant chemical Delta-9 THC” by the CSA and U.S. Drug Enforcement Administration (“DEA”), Marijuanais 100% federally illegal and listed next to heroin as a Schedule I controlled substance having “a high potential for abuse” and for which there’s “no currently accepted medical use in treatment” and “a lack of accepted safety for use” “under medical supervision”. 21 U.S.C. §812(b)(1). The CSA prohibits Marijuana’s cultivation, distribution, dispensation and possession and, pursuant to the U.S. Constitution’s Supremacy Clause, state laws conflicting with federal law are generally preempted and void. U.S. Const., Art. VI, cl. 2; Wickard v. Filburn, 317 U.S. 111, 124 (1942).
Pursuant to the CSA, the DEA “schedules” drugs from most perilous – Schedule I – to least harmful – Schedule V – based on three factors: (1) Potential for abuse: How likely is this drug to be abused; (2) Accepted medical use: Is this drug used as a treatment in the United States; and (3) Safety and potential for addiction: Is this drug safe, how likely is it to cause addiction and, if so, what kinds of addiction?
Beyond making Cannabis 100% federally illegal and preventing it from being sold outside of each respective legalized-Marijuana state (i.e., no “interstate cannabis commerce”), Schedule I classification both precludes any federally-funded Cannabis research and imposes heinous tax consequences on Marijuana Related Businesses.
Reclassifying Impact on Operations, Investment and Research
By reclassifying from Schedule I to III, federally-funded Cannabis research will finally occur, MRBs will cease being encumbered by §280E, and Marijuana Related Business investment should sky-rocket.
First, due to federal illegality, §280E of the Internal Revenue Code denies state-legal MRBs any tax deduction or credit other than “cost of goods sold”. 26 U.S. Code §280E (1982).
Thus, unlike every other legitimate industry, Marijuana Related Businesses are denied ordinary and necessary business expense tax deductions (ex., wages, rent, utilities, and insurance) causing them to be vastly more expensive, and dramatically less profitable, to operate. Reclassifying to Schedule III removes §280E’s prohibitions and allows MRBs to take ordinary and necessary business expenses tax deductions reducing costs, easing operations and increasing profit.
For example, according the Wall Street Journal and its own press release, publicly traded “multi-state” Cannabis grower, processor and dispensary Jushi Holdings Inc. (“Jushi”): (1) lost 72% of its value over past 57 months and suffered a $23.7 million Q3 net loss; (2) presently has @$23.21 million in cash; (3) owes $162.79 million in taxes; and (4) is being pressed to repay $215.8 million of total gross debt. Beyond boosting profitability and diminishing tax debt, reclassifying to Schedule III would significantly increase Jushi’s profitability and war chest.
Second, as a result of federally-funded research, wider public acceptance, and higher profitability, reclassifying to Schedule III will enhance Cannabis investment. Beset by a lack of investment capital, a mishmash of 3 conflicting regulatory bodies, and an inability to meet exceedingly optimistic performance goals, reclassification will enhance the valuation of an this promising. but underperforming, industry.
Third, Schedule III reclassification indicates the Federal government deems Cannabis to have “moderate to low potential for physical and psychological dependence” (and not Schedule I’s “no current medical use with high potential for abuse and/or addiction” stigma) opening the floodgates for federally-funded research. Federally approved and funded research will both enhance public acceptance of Cannabis medical application and deploy the Feds nearly infinite resources like those of the U.S. Food and Drug Administration (which is budgeted at $6.1 billion) and will be empowered to regulate MRBs and promulgate uniform Cannabis industry standards and prohibitions.
Path to Cannabis Schedule III Classification
On August 30, 2023, the U.S. Department of Health and Human Services(“HHS”) recommended that the DEA reschedule Cannabis to Schedule III and, in January 2024, released its 250-page rescheduling evaluation finding that Cannabis has currently accepted medical use in the U.S. and therefore cannot be classified as a Schedule I substance.
In July 2024, when the 60-day public comment period closed for the proposed rescheduling rule, nearly 70% of the more than 43,000 commenters supporting full federal descheduling, decriminalizing or legalizing
Rather than issuing a final rule fast-tracking the rescheduling proposal, in August 2024 former DEA Administrator Anne Milgram granted an administrative law hearing allowing rescheduling opponents and proponents to debate proposal’s merits in a public forum which, inexplicably, the Trump Administration has neglected to schedule.
The Executive Order directs the:
(1) Attorney General to expedite completing the Cannabis rescheduling process to Schedule III of the CSA;
(2) White House Deputy Chief of Staff for Legislative, Political, and Public Affairs to work with the Congress to allow Americans to benefit from access to appropriate full-spectrum CBD products while still restricting the sale of products that pose serious health risks; and
(3) HHS to develop research methods and models utilizing real-world evidence to improve access to hemp-derived cannabinoid products in accordance with Federal law and to inform standards of care.
Copyright ©2025 by Steven M. Schain, Esquire
BIG NEWS: Cannabis has been signaled to be removed from Schedule I and placed into Schedule III
Removing cannabis from Schedule I opens the door to research, recognizes its medical value, and begins to reduce the harm caused by outdated laws
This is what we fight for.
You know who has not fought for cannabis patients, veterans, and the industry I have been a proud leader of for almost two decades?
Diana DeGette.
Colorado deserves a representative who has spent their life fighting for real change, and getting real results.
That is why I am running for Congress.
A few points that I will expand on in a forthcoming article covering President Trump’s Executive Order (EO).
– I anticipated an EO to reschedule cannabis. What I did not anticipate was that the EO would also save hemp from impending doom. Total surprise.
– There is still rulemaking to be done before rescheduling becomes official. It is unclear how long the process will take, when tax relief will be coming, and whether tax relief will extend to medical only, or both medical and recreational sales of cannabis.
– As many have said, and as I will reiterate: rescheduling to Schedule III under the CSA does not mean cannabis is legal and does not mean it can cross state lines. Drugs under Schedule III are only legal if approved by the FDA and prescribed. If you get an opioid without a prescription, it is an illegal drug.
– On the hemp side, a few words jumped out at me that I believe are admonitions to certain aspects of the “hemp ban” in the FY 2026 Ag Appropriations bill, or “nods” to saving specific parts of the hemp industry.
* “Final” before “hemp-derived cannabinoids” says to me that Congress needs to ensure CBD is not made illegal as a result of an intermediate step in the manufacturing process where the amount of THC is higher than in the final product.
* The reference of “CBD to THC ratio requirements” is a nod to edibles, where ratios of THC to CBD are common.
* The discussion “milligrams of THC per serving with considerations on per container limits THC per serving size” is a nod to THC beverages.
Last thing: Trulieve’s Kim Rivers, one of the only female CEOs amongst the MSOs, was instrumental in making this happen. I say this not to emphasize diversity, but to emphasize the importance of giving women not just a seat at the table, but THE seat at THE table. 💪