Key Takeaways
- President Trump’s executive order to loosen U.S. restrictions on marijuana is a step towards easing federal restrictions, but it does not automatically revoke laws targeting marijuana.
- Rescheduling marijuana as a lower-risk drug may open up new opportunities for cannabis research, but it is not as simple as flipping a light switch.
- The Controlled Substances Act does not grant the president the authority to unilaterally reschedule a drug, and changes are historically made through either a rulemaking process or an act of Congress.
- The timeline and scope for easing marijuana restrictions will depend on how the administration enacts Trump’s order, and it is not yet known how other policies might change.
- Cannabis firms may get tax relief, but credit cards remain forbidden, and medical research may be easier, but finding marijuana to study remains a challenge.
Introduction to Marijuana Rescheduling
President Trump’s long-anticipated executive order to loosen U.S. restrictions on marijuana promises to bring immediate relief for cannabis businesses — but only in some respects. The order directs Attorney General Pam Bondi to take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the Controlled Substances Act. However, experts say that rescheduling marijuana is not as simple as flipping a light switch, and it will take time to enact the changes.
The Rescheduling Process
The time frame for rescheduling marijuana depends on which path the Department of Justice (DOJ) takes. The Trump administration could resume the process that was already underway under former President Joe Biden, or it could use a streamlined process that allows the attorney general to move a drug to whatever schedule they deem is best, without going through the usual steps. The DOJ’s approach to administrative hearings and public comment periods will also help determine the pace of rescheduling. If the DOJ uses the expedited option, it may not call for public comment, which could shorten the process.
Impact on Cannabis Businesses
Rescheduling marijuana could bring a cascade of positive changes to the cannabis industry. One benefit could come immediately, as cannabis businesses would no longer be subject to the restrictive punitive tax code, Section 280E, which blocks them from claiming common tax deductions. This could lead to significant tax relief for cannabis companies. However, credit cards remain forbidden, and most financial institutions refuse to provide basic banking services to state-authorized marijuana businesses, due to potential liability.
Medical Research
The new rules may also ease restrictions on medical research, as researchers would no longer need to obtain a Schedule I license, and laboratory regulations would be eased. However, finding marijuana to study remains a challenge, as the U.S. requires researchers to obtain marijuana from a handful of sources. Federal rules about sourcing marijuana have been decided separately from the controlled substances schedule, and it will take time to change these policies.
Challenges Ahead
While President Trump’s executive order is a step towards easing federal restrictions on marijuana, it is not a silver bullet. Many details will shape how the administration enacts Trump’s order, affecting the timeline and scope for easing marijuana restrictions. The DOJ will need to balance Trump’s call for expedience with the need to defend its actions in court, and it is not yet known how other policies might change. Additionally, rescheduling marijuana will not automatically revoke federal laws targeting marijuana, and interstate marijuana commerce would remain illegal.
Conclusion
In conclusion, President Trump’s executive order to loosen U.S. restrictions on marijuana is a significant step towards easing federal restrictions, but it is not a simple process. The rescheduling of marijuana will take time, and it will depend on how the administration enacts Trump’s order. While there are potential benefits for cannabis businesses and medical research, there are also challenges ahead. The DOJ will need to navigate the complex process of rescheduling marijuana, and it will take time to change federal policies and laws. However, with the potential for significant tax relief and eased restrictions on medical research, the future of the cannabis industry looks promising.
