President Donald Trump has signed an executive order to ease federal restrictions on marijuana, setting in motion a process to reclassify the drug from Schedule I to Schedule III under the Controlled Substances Act.
The reclassification would acknowledge marijuana's accepted medical uses and recognize that it has a lower potential for abuse than drugs like heroin or LSD, which remain in Schedule I. However, the order does not automatically revoke laws targeting marijuana, which remains illegal to transport over state lines.
The move brings some immediate changes for the cannabis industry, including potential tax benefits for marijuana businesses that have long been denied standard business deductions. However, other changes will take more time to implement as federal agencies work through the regulatory process.
The decision marks a significant shift in federal drug policy and comes as marijuana has been legalized for recreational use in 24 states plus Washington D.C. Medical marijuana is legal in 38 states. The reclassification is expected to boost the legal cannabis industry while raising questions about how federal and state laws will interact.
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