of adult-use( aka, recreational) cannabis would remain illegal under federal law, and it would not allow full federal legalization or automatic expungements of past federal convictions. 4
Here are other changes that will take place with the complete rescheduling of cannabis from Schedule I to Schedule III. 5
1. Tax ReLeaf – State-compliant cannabis businesses would be able to legally deduct ordinary business expenses on their federal tax returns, such as rent, payroll, and marketing, ending the debilitating financial burden of 280E. 5 Many believe this will lower cannabis prices for consumers.
2. Banking Access – Traditional banks and lenders would be more willing to provide loans and financial services to cannabis operators, thereby drastically reducing interest rates and fees compared with the small number of financial institutions that currently serve the industry. 5
3. Easier Research – Conducting clinical trials and studying cannabis would become significantly easier, as researchers would no longer be subject to the highly restrictive DEA requirements that apply to Schedule I drugs. 5 This is especially important in Missouri, as the Department of Cannabis Regulation( DCR) is getting closer to taking applications for Research & Development licenses.
4. FDA Drug Development – Pharmaceutical companies could more easily research and develop standardized, FDA-approved cannabis-derived medications. This is probably the only change that makes the cannabis industry nervous, as many think they will try to take over the industry. 6
5. State Protections Unchanged – Medical and adult-use cannabis would be unchanged at the state level. 4
6. Federal Reclassification Limitations – Federal possession and distribution of recreational cannabis without a state-issued or federal FDA approval would still technically remain a federal crime. 4
7. Federal Sentencing – While penalties for unauthorized manufacturing or distribution of Schedule III drugs are generally less severe than those for Schedule I drugs, mandatory minimum sentences based on the quantity of marijuana trafficked would remain in effect. 4
Hopefully, by the time you are reading this, all cannabis( like medical) will be rescheduled to Schedule III in the Federal Register. Fingers crossed!
1. |
DEA Names 7 Anti-Rescheduling Parties for Cannabis Hearing, Zero |
Pro Parties | Cannabis Business Times |
2. |
Marijuana Rescheduling Regulatory Actions | DEA. gov |
3. |
What to expect from the DEA marijuana rescheduling hearing |
4. |
Legal Consequences of Rescheduling Marijuana |
5. |
Federal Marijuana Rescheduling | Moritz College of Law |
6. |
Vicente LLP | Cannabis Law & Policy • Cannabis Rescheduling |
Explained |
Clayton Stallings is the Director of Sales & Marketing for
The EVOLUTION Magazine
August 2026 25