From
Editor
Could It Be a Happy New Year for the MJ Industry?
Welcome to 2026! Along with pages filled with educational stories, new products, how-tos, and news, this month, writer Samantha Blum, chairwoman of the Missouri Microbusiness Association and founder of Bud Wizard microbusiness, shares the latest news about Monsta Farms, a new microbusiness that recently harvested its first crop( see cover photo). These smaller-scale microbusinesses not only support local economies but also encourage community engagement, job creation, and the development of unique cannabis products and the traditional offerings that we’ ve become accustomed to. Learn more about Monsta Farms on page 10.
On December 18, 2025, breaking news reported that the President signed an executive order that moves marijuana from a Schedule I drug to a lower Schedule III classification. The executive order could be good and bad news for the marijuana industry. It will ease federal restrictions, allow for more research into its medical uses, enable more access to cannabis products, and potentially benefit the cannabis industry.
Reclassifying to Schedule III can facilitate research into marijuana’ s medical benefits, particularly for chronic pain and other health issues. It could be accepted for medical use and allow Medicare to cover certain cannabis products, especially for seniors. For the cannabis industry, this change can lower taxes and make it easier for cannabis businesses to secure funding and deposit money in federally insured banks. It can enable cannabis businesses to finally get the same federal tax deductions for business expenses as any other company or corporation. It could also attract institutional investors, significantly boosting the cannabis industry.
While reclassification will not fully legalize marijuana, it would reduce penalties and oversight, aligning it more closely with common prescription drugs. The executive order is anticipated to clarify which cannabinoids are covered and establish a framework for FDA oversight. Some industry leaders think it could bring longawaited relief, while others caution that rescheduling could expose existing cannabis businesses to new federal risks without providing full legalization.
However, the industry warns of new federal legal risks. A CBS News report( 12 / 15 / 25) said, in part:
“ Despite the potential benefits, some cannabis leaders warn that Schedule III could introduce new criminal exposure under federal drug and pharmaceutical laws.”
“ I, among others in the industry, are very concerned that Trump’ s news of rescheduling is a false flag,” said Josh Kesselman, publisher of High Times and founder of RAW Rolling Papers.
Kesselman warned that moving THC to Schedule III could allow pharmaceutical companies to dominate the market with synthetic THC while subjecting dispensaries and growers to enforcement under the Food, Drug, and Cosmetic Act.
“ These new federal crimes include selling a prescription drug without a license, misbranding a drug, illegal distribution, and conspiracy,” he said.
Chris Fontes, founder and CEO of High Spirits, echoed those concerns, saying many cannabis businesses would be unable to operate legally in a Schedule III framework without FDA approval and licensure.
Let’ s hope the successful Missouri cannabis industry regulations remain enforce and businesses operate as usual under the Schedule III reclassification without any adverse federal changes. The executive order won’ t take effect immediately. We’ ll continue to cover this great news in future issues. Happy New Year! Make it your best!
6 January 2026
From
The
Editor
Bill Cromwell, Editor-in-Chief
Could It Be a Happy New Year for the MJ Industry?
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