USA (Washington Insider Magazine) —The Biden administration is set to take a historic step toward loosening federal cannabis restrictions, with plans to reclassify marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act. This change, anticipated to be confirmed by the Drug Enforcement Administration (DEA), would mark the first shift in federal cannabis policy in over 50 years, allowing the drug to be acknowledged for its medical potential.
Rescheduling cannabis as a Schedule III substance, alongside drugs like codeine and steroids, would reduce barriers to medical research and open doors for pharmaceutical companies to participate in the cannabis market in states where it’s legal. For the $34 billion cannabis industry, this reclassification could also ease financial pressures, lifting tax restrictions that prevent cannabis companies from claiming standard business deductions under IRS code Section 280E. In addition, this move may help undercut black-market sales, especially in states where legalization has been undercut by the black market.
However, the rescheduling process will take time. The proposal will be subject to a 60-day public comment period and a potential administrative review before any final rule is implemented. Congress could also challenge the rule through the Congressional Review Act, although this is unlikely given the Democratic Senate majority.
Cannabis reform has gained bipartisan support, with around 6 in 10 Americans favoring legalization for both medical and recreational use. Many lawmakers are pushing for further cannabis reform legislation, such as the SAFER Banking Act, which would allow cannabis businesses access to traditional financial services, and the HOPE Act, which would support expunging records for minor cannabis-related offenses.
Despite support, the potential reclassification has raised concerns. Some experts, including Kevin Sabet of Smart Approaches to Marijuana, argue that relaxing cannabis restrictions could lead to higher youth exposure and potential health risks due to high-potency products. Research suggests a link between potent cannabis and mental health disorders, particularly in young men.
Senate Majority Leader Chuck Schumer praised the Biden administration’s efforts, calling the reclassification “long overdue.” He remains committed to passing the SAFER Banking Act and pushing for the full removal of cannabis from the Controlled Substances Act. Meanwhile, lawmakers are cautious, recalling unintended consequences from the legalization of hemp in 2018, which led to the unregulated sale of synthetic cannabinoids, like Delta-8, often without proper oversight.
Senator Cory Booker also supported the reclassification but emphasized the need for comprehensive reform, stating that cannabis-related criminal records continue to burden thousands of Americans. He urged Congress to follow the example of states that have legalized cannabis, aiming to create a clear federal framework that balances legal cannabis sales with safety and economic justice for communities impacted by the “War on Drugs.”