Trump Reschedules Marijuana: Major Shift for Cannabis Industry

BREAKING: President Donald Trump just signed an executive order reclassifying marijuana from a Schedule I drug to a Schedule III drug, marking a historic shift in federal cannabis policy. This pivotal change not only alters the legal landscape for cannabis but also opens new doors for medical research and the cannabis industry as a whole.

During the signing ceremony in the Oval Office, Trump emphasized that this reclassification will facilitate marijuana-related medical research. “This classification order will make it far easier to conduct marijuana-related medical research,” he stated. This move could significantly impact how researchers study the benefits and risks associated with cannabis.

Experts are optimistic about the implications for medical research. Hillary Marusak, an associate professor at Wayne State University, noted the challenges researchers face due to the federal illegality of cannabis. “It’s actually a really exciting treatment target for things like anxiety and post-traumatic stress disorder and pediatric epilepsy,” she explained.

The impact on the cannabis industry is equally significant. Natalia Cardenas, manager at New Standard Cannabis, shared her experience with customers benefiting from marijuana for various health issues. “Back pain, knee pains, and now we have topicals for them,” she said, expressing hope for improved products due to increased research.

However, the reclassification does not mean immediate changes for cannabis businesses. Nick Hannawa, chief legal counsel at Puff Cannabis Company, highlighted the financial burdens cannabis companies face under the IRS tax code, specifically Section 280-E, which restricts tax deductions. “We are one of the most harshly taxed industries in the entire country,” he stated. The potential for tax relief, estimated to save companies millions, is a crucial aspect of the rescheduling.

Despite the optimism, challenges remain. Although this move could attract new investments, it does not legalize cannabis federally. Ross Sloan, senior vice president for cannabis banking at Dart Bank, noted that while compliance costs have kept many banks from entering the market, gradual changes may occur over time.

Republican opposition to the order is also noteworthy. Several members of Congress have voiced disapproval, including Senator Cynthia Lummis of Wyoming and Senator John Hoeven of North Dakota, who expressed concerns about the potential risks associated with cannabis.

As the cannabis industry looks ahead, the focus now shifts to the SAFER Banking Act, which aims to ease banking restrictions for cannabis companies. This legislation could further transform how the industry operates and interacts with traditional financial institutions.

In summary, Trump’s reclassification of marijuana is poised to reshape both the cannabis industry and medical research. With immediate implications for businesses and researchers alike, this development is one to watch closely. The coming weeks will be crucial as stakeholders assess the full impact of this significant policy change.

Stay tuned for updates as this story unfolds.