With newly appointed Drug Enforcement Administration head Terry Cole pledging this past spring to make cannabis rescheduling a top priority if confirmed (and then omitting it on his checklist in late July following confirmation), President Trump has now picked up the mantle by noting he will be “looking into it” soon.
It has come as a welcome moment for an industry that has been on tenterhooks since then US President Joe Biden said over two years ago his administration would be rescheduling cannabis from its current Schedule I designation to Schedule III under the Controlled Substances Act. As a Schedule I substance, cannabis is criminally prohibited by federal law and has a “high potential for abuse.” Rescheduling cannabis as a Schedule III substance means it is legal to be sold in licensed pharmacies under a doctor’s prescription.
Unfortunately, the process toward rescheduling has stalled largely due to the change in presidential administration.
Though cynics might be quick to dismiss the president’s words as empty political rhetoric, some industry leaders are applauding President Trump’s openness in publicly addressing rescheduling and hoping his desire to move forward will materialize in the form of concrete action.
Adam Stettner, CEO of cannabis industry lender FundCanna, certainly hopes so. For him, rescheduling is more than a symbolic gesture—it’s a public safety and economic imperative.
“The legal cannabis industry now supports over 450,000 full-time jobs and has generated more than $24 billion in state tax revenue,” said Stettner. “Yet federal law still forces legitimate operators into a gray market, denying them access to banking, fair taxation, and basic business protections. This vacuum allows cartels and bad actors to thrive, fueling an illicit market that is four times larger than the legal one. Rescheduling is how we shift capital and control away from criminals and toward taxpaying businesses.”
Gibran Washington, CEO of Ethos Cannabis, an East Coast multistate operator, echoed Stettner’s sentiments but added that “…Patients, veterans, and everyday Americans deserve safe, regulated access to cannabis that is grounded in research and education. The time to modernize federal cannabis policy is long overdue.”
And, although rescheduling cannabis to a Schedule III category may not legalize the plant, it would be a critical step toward opening the door to more medical cannabis research while ushering in new investments, better access for capital markets and a stronger foundation for industry growth, according to Anthony Coniglio, CEO and president of Newlake Capital Partners, a provider of real estate financing to cannabis operators.
“The next few months will determine whether this process delivers regulatory clarity or becomes mired in politics,” said Coniglio. “Policymakers should follow the data, the Department of Health and Human Services’ recommendation, and the principle that science — not stigma — should drive scheduling decisions.
He added, “Rescheduling is not the final step, but it is an essential one. The science is clear, the process is underway, and the benefits are within reach. Now it’s time to finish the job.”