President Donald Trump is expected to reclassify cannabis as a dangerous drug as soon as today.
What happens next — and exactly where the $32 billion legal tender industry can expect to reap the benefits — is unclear and may linger even after the President issues the executive order, legal and political observers have been told. Mjbizdaily.
“It’s hard to say exactly what the restructuring process will look like at this point,” said Tim Swain, a Boston-based partner at law firm Vicente LLP.
“There are several ways the process could take,” he added, including “going back to last year’s hearing on the proposed DEA rule or similar.”
Whether the reintroduction of marijuana follows a Biden-era pattern or Trump takes “a different, perhaps more aggressive approach is unclear and will remain at least until the executive order is issued,” Swaw said.
However, the benefits of the $32 billion US deregulation of the marijuana industry are clear.
What has Marijuana Rechchuling done for the Plant Plants business?
Delegating cannabis as a Schedule 3 drug, down from Schedule 1 of the Controlled Substances Act, promises tax relief for cannabis-related businesses.
Internal Revenue Code Section 280e, which prohibits the deduction of ordinary business expenses on Federal returns, applies only to sellers of schedule 1 and schedule 2 drugs.
“For plant operators, that’s a fast line and a break in cash flow,” said Jason Deland, founder and chairman of dosist, a cannabis-based wellness brand. “The difference between survival and investment in people, R&D, sales experience, safety testing, and product.”
That said, there are clear limitations. He warned Ndsonda: “Plan 3 is not a legal registration.”
What marijuana multiplication does not do: banking, investment, and related trading
Further reforms, such as Congress finally passes a bank payment or similar methods of cannabis for the recovery of cannabis, are needed for the large-scale commercial operation that is controlled by the regulated trade in the risks of public use and the general public exchange.
“The fundamental challenges surrounding cannabis banking such as compliance burdens, currency dependence, and regulatory uncertainty will remain unchanged,” said Terry Mendez, financial manager of cannabis finance, a major cannabis finance provider..
“The industry will still fall under the Bank Secrecy Act, with all its reporting and scrutiny obligations,” he added. “This moment is likely to invite broad interest in financial institutions, but without structural reform or rejuvenating guidance, many will remain cautious.”
Because of this, the largest cannabis companies – even those that have already filed tax returns going back several years seeking immunity from 280e – enter 2026 prepared to continue business as usual.
Marjuana Rescheduling and Research, Plus Hemp Thc
Conventional wisdom holds that the status of cannabis under Federal law will raise barriers to research and encourage public universities and other institutions that Leery of losing federal money to lose federal money to reduce money.
That’s despite speculation that the poison pill tied to the BIDEN-ERA Research Bill will advance with Stemie working in the United States.
However, schedule 3 cannabis is a legal government that recognizes marijuana as a drug. The reorganization could encourage state health officials to consider research conducted overseas, such as the cannabis-induced studies in the treatment of neuropathic pain conducted in the United Kingdom by management.
Successful Deschedule CanSchedule CanChebule efforts, as many activists want, will take such an approach.
Many observers are looking for more comprehensive reform efforts after the marijuana reform.
For example, HEHP activists hope that the reform will encourage Congress to revisit last month’s ban on THC-based products.
As well as regulating all THC products under Federal law – Which would include the Hemp and Marijuana sectors to the tune of $60 billion thc
“The restructuring increases the likelihood that the Federal Reserve and the federal government will move toward a more consistent framework that keeps hemp products legal but well-regulated,” said Deo New of Orneans, a Hemp Thc company.
How does the marijuana recovery process work?
The expected departure of the President follows a successful campaign by Charm which was run by cannabis businesses and their lobbyists.
We also follow the effort to relax the Federal regulations on marijuana that began on Oct. 2022 by former President Joe Beriden.
Under the bid, health regulators announced on Aug. 2023 that cannabis has a medical use “currently accepted” in the United States – Obtaining Cannabis equal to schedule 3, the designation of drugs that use energy but also medical benefits.
That was the previous justification General Merrick Garland said on May 16, 2024 Memo that, currently, the main evidence that Marijuana does not approve the CSA control law “and the next proposed law.
From there, the process was sent.
Standard Federal Administrative Law procedures require a formal public comment period. Many comments from opponents in the state called on the DEA to first put the matter before a public hearing. Failure to do so would have re-exposed the challenge of reversing the legal challenge, analysts said at the time.
The former director of the DEA Anne Milgram planned before the Supreme Administrative Judge of the Supreme Administration of Drugs to begin in December 2024. However, those charges are accused of Trump’s invention – which is part of showing that cannabis is the 1st drug.
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Is Marijuana Rescheduling Actually Bad for the Cannabis Industry?
Legal challenges are almost guaranteed for uncapped cannabis products. But even some of the most prominent cannabis figures concerned about reintroduction would threaten the entire existing industry.
They point out that the only 3 drugs that are legally sold in the US are only available in pharmacies – and only through the expensive and costly process of drug addiction. That means that schedule 1 opens the door for Cannabis to be hacked by big pharmaceutical and alcohol companies, or fried.
“I, among others in the industry, am deeply concerned that Trump’s repatriation news is a false flag!” Said Josh Kesselman, founder and public face of the crack paper community and the new publisher of High Times Magazine.
“Going thc to schedule III will allow big PHARMA to introduce their prescription-only thc pills at huge costs that amount to outright felonies,” Kesselman said in a statement.
Some in the legal Interijuana see interest in the people who are the biggest players as an inevitable consequence of normalization. Some accept it.
“The cannabis industry is definitely a threat to these big operators,” Boris Jordan, the Chairman of Marijuana mustrate’s managing director, was told Mjbizdaily.
“We have to build businesses that will compete with them.”
“If you don’t, you will lose.”
Chris Roberts can be reached at chris.robert@mjbizdaily.com.
