President Trump Considers Marijuana Rescheduling: A Potential Game-Changer for Cannabis Industry

In a move that could transform the landscape of the cannabis industry, President Donald Trump is reportedly contemplating an executive order to reclassify marijuana as a less dangerous substance under federal law. According to a report by the Washington Post, discussions between Trump and Republican House Speaker Mike Johnson have centered around moving cannabis to Schedule 3 of the Controlled Substances Act. Such a reclassification would mark a significant shift in federal cannabis policy, aligning with previous efforts to ease restrictions on the drug

The potential reclassification of marijuana comes after Trump previously expressed his intention to address cannabis rescheduling. While the timeline remains uncertain, and the president's commitment to the plan is not yet solidified, industry insiders are watching closely. The move could alleviate the heavy tax burdens faced by cannabis businesses, which currently cannot make standard business deductions due to marijuana's status as a Schedule 1 drug. If executed, this policy change could provide a substantial boost to the $32 billion regulated cannabis market

During a recent phone call with Speaker Johnson, President Trump reportedly indicated his intention to proceed with the rescheduling initiative. Present during this call were several notable figures, including Health Secretary Robert F. Kennedy Jr. and Mehmet Oz, head of the Centers for Medicare and Medicaid Services. Although the identities of the marijuana industry executives present were not disclosed, it is known that leaders from major cannabis companies like Cresco Labs and Trulieve Cannabis Corp. have been working to build connections with the Trump administration

This potential rescheduling could be seen as a continuation of Trump's recent policy actions impacting the cannabis sector. Last month, he signed legislation redefining hemp, restricting the sale of certain hemp-derived THC products, which was welcomed by many in the regulated cannabis industry. For Trump, a move to reschedule marijuana might also be a strategic political maneuver, as he had previously expressed support for adult-use legalization in Florida, a key state for both cannabis operations and his voter base

The rescheduling of marijuana would also represent a completion of efforts initiated during the Biden administration. In October 2022, President Biden directed federal agencies to review marijuana's classification, which led to an acknowledgment of its medical use by federal health regulators in August 2023. However, progress stalled, leaving the matter unresolved. Trump's potential action could thus be viewed as finishing what Biden started, adding a complex layer to the political dynamics surrounding cannabis reform

Despite the potential benefits, the prospect of rescheduling has not been universally welcomed. Critics, such as Kevin Sabet, president and CEO of Smart Approaches to Marijuana, have voiced concerns that the decision is based more on business interests than scientific evidence. Sabet, a former White House drug policy official, warned that the move could have unforeseen consequences, emphasizing that the outcome remains uncertain with Trump at the helm. As the situation develops, stakeholders on all sides are preparing for a possible shift in the federal stance on marijuana

Looking ahead, the cannabis industry remains cautiously optimistic about the potential rescheduling. While the exact details and timing of Trump's decision are still up in the air, the prospect of a more favorable regulatory environment is a tantalizing possibility for businesses and advocates alike. As the conversation around cannabis reform continues to evolve, the industry is poised to adapt to whatever changes the future may hold