President Trump just fast-tracked marijuana from the most dangerous drug class to a moderate one, igniting a firestorm over America’s real poison: fentanyl.
Story Snapshot
- Trump’s December 18, 2025 executive order expedites marijuana’s shift from Schedule I to Schedule III, easing federal restrictions.
- This move builds on Biden-era reviews, promising tax relief and banking for cannabis businesses.
- Fentanyl remains Schedule II with no WMD declaration, exposing policy gaps in the opioid crisis.
- Rescheduling acknowledges marijuana’s medical uses while maintaining federal control.
- Industry hails it as transformative, but legal uncertainties linger.
Trump’s Executive Order Accelerates Rescheduling
President Donald Trump signed an executive order on December 18, 2025, directing the Attorney General to finalize marijuana’s move to Schedule III under the Controlled Substances Act. This action resolves delays from prior hearings and ensures access to full-spectrum CBD products. The order emphasizes marijuana’s accepted medical uses and lower dependence potential compared to Schedule I drugs like heroin. DEA rulemaking, proposed in May 2024, now proceeds expeditiously. Trump prioritizes deregulation and patient access amid state-level legalization.
Cannabis businesses stand to gain immediately from ending IRC Section 280E taxes, which previously blocked deductions and slashed profits by 30-70%. Banks gain clearer paths to serve state-legal operators, unlocking financing for a $30 billion industry. Patients benefit from eased research barriers for conditions like pain and nausea. Common sense dictates this reform aligns with 38 states’ medical programs and reduces black market incentives.
Timeline Traces Decades of Federal Inertia
The Controlled Substances Act of 1970 placed marijuana in Schedule I, equating it to LSD despite emerging medical evidence. President Biden initiated a review in October 2022, prompting HHS to recommend Schedule III in August 2023 after evaluating medical utility. DOJ affirmed this in April 2024. DEA proposed the rule in May 2024 but postponed a January 2025 hearing due to appeals. Trump’s order cuts through bureaucratic knots, advancing a process stalled for years.
Twenty-four states now permit recreational use, yet federal Schedule I status imposed harsh penalties, research limits, and tax burdens. Rescheduling to Schedule III recognizes moderate abuse potential, mirroring precedents like hydrocodone’s 2014 shift. This step eases penalties without full descheduling, preserving enforcement tools against abuse.
Stakeholders Navigate Power Shifts
HHS conducted the scientific review, influencing DEA’s proposal. DEA executes rescheduling under Attorney General oversight, now accelerated by Trump’s directive. Cannabis industry leaders lobbied for relief from Section 280E and banking restrictions. Legal experts like those at Moritz College of Law monitor for regulatory confusion. Trump holds ultimate authority, directing federal agencies to align with his deregulation agenda.
Industry voices call it a “watershed” moment. Clark Hill’s Craig Small describes it as moving the “football closer to the end zone,” predicting profit booms. Buchalter highlights new banking opportunities under Schedule III’s lower risk profile. Dickinson Wright cautions on lingering federal-state conflicts. These perspectives reveal optimism tempered by realism, rooted in facts favoring economic freedom.
Impacts Challenge Opioid Priorities
Short-term, businesses access deductions and loans, fueling growth. Long-term, research expands for therapies, potentially shrinking illicit markets. Communities may see reduced enforcement costs, though federal control persists. Fentanyl, killing thousands yearly as a Schedule II drug, receives no such elevation to WMD status despite its devastation. This contrast underscores misplaced priorities: easing marijuana while opioids ravage families. Conservative values demand tougher fentanyl action over cannabis leniency.
Sources:
https://www.buchalter.com/insights/federal-cannabis-rescheduling-creates-new-banking-opportunities/
