Breaking New Ground: DEA Set to Reclassify Cannabis in Landmark Shift

In a historic move, the Drug Enforcement Administration (DEA) is set to reclassify cannabis from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA), according to reports from The Associated Press based on anonymous sources. This change follows a directive from President Joe Biden in October 2022 to the U.S. Department of Health and Human Services (HHS) and the DEA to review cannabis' scheduling, emphasizing a scientific and data-driven approach. After months of deliberation, the HHS recommended the reclassification, acknowledging cannabis' accepted medical use and lower potential for abuse compared to Schedule I and II substances.

The rescheduling of cannabis could dramatically alter the landscape of the cannabis industry, reducing regulatory burdens particularly related to banking, research, and taxation. Schedule III substances, while still controlled, face fewer restrictions than Schedule I or II drugs, potentially opening new opportunities for medical research and business operations.

However, the proposed change is still pending final approval. The DEA's recommendation must undergo a review by the White House Office of Management and Budget and survive a 60-day public commentary period. Historically, such processes have been protracted and contentious, reflecting the complexity and varied public opinions on cannabis regulation.

This move by the DEA, if finalized, would mark a significant shift in federal cannabis policy, which has long been at odds with state-level legalization and public sentiment increasingly in favor of legalization and regulation rather than prohibition.