President Trump's executive order to ease federal restrictions on marijuana is expected to provide immediate benefits for cannabis businesses, but the changes will not be universal. While the rescheduling of marijuana as a lower-risk drug is promoted as a catalyst for cannabis research, experts caution that the process is more complex than it appears.
The executive order, issued in December 2025, sets in motion a process to reclassify marijuana under federal law. However, it does not automatically nullify existing laws targeting marijuana, including those that prohibit transporting it across state lines. This means that while cannabis businesses may experience some immediate relief, significant legal hurdles remain.
Gillian Schauer, executive director of the nonpartisan Cannabis Regulators Association, which includes agencies from 46 states, emphasized the need for realistic expectations. "It's hard to see the big headlines of, 'Marijuana rescheduled to Schedule III; marijuana research will open,'" Schauer said. "You know, those things are not true as of now."
The rescheduling process, while initiated by the executive order, requires further regulatory action. The Drug Enforcement Administration (DEA) must propose and finalize a rule to move marijuana from Schedule I to Schedule III of the Controlled Substances Act. This process typically involves a period of public comment and can take months or even years to complete.
The potential benefits of rescheduling include tax advantages for cannabis businesses, as they would no longer be subject to Section 280E of the tax code, which prohibits businesses that traffic in Schedule I or II substances from deducting ordinary business expenses. Rescheduling could also make it easier for researchers to study the potential medical benefits of cannabis.
However, experts caution that rescheduling alone will not solve all the challenges facing the cannabis industry. Federal prohibition continues to create obstacles for businesses, including limited access to banking services and difficulties in interstate commerce.
The future of marijuana policy in the United States remains uncertain. While the executive order represents a significant step toward federal reform, further legislative action may be necessary to fully resolve the conflict between federal and state laws. The ongoing debate over marijuana legalization is likely to continue for the foreseeable future.
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