Federal Government considering reclassifying Cannabis.

In an unexpected announcement, the US federal government has begun discussions about reclassifying cannabis from a Schedule 1 drug to a potential Schedule 3 c. With its current classification, cannabis is considered an illegal drug to carry across state lines, especially to those who currently have no recreational use laws on the book. Reclassifying it may open new legal opportunities for cannabis business.

For drugs in the US, the Drug Enforcement Agency or DEA, has a classification based on how abusable the drugs are, classified as Schedules 5 to 1. Schedule Five and Four are drugs that are not known to be abusable and are not as regulated. Most Over the Counter medicines like allergy pills and antacids fall under these categories.

Where cannabis currently sits is Schedule 1, drugs that have no known medical use and are considered some of the most dangerous drugs on the streets today. This is the category that drugs like Heroin, LSD and ecstasy sit at. (1) Due to political factors, cannabis was placed there when the Controlled substances Act was passed in 1972, citing again no medical claims and the belief it is a gateway drug.

Fast forward to 2023, and the opinions on cannabis has shifted significantly. Thirty-eight states now have at least medical cannabis legalized, with twenty-two states plus the District of Colombia having fully legalized commercial markets. The problem is that with the current class scheduling of cannabis, taking them across state lines is illegal. Many banks as a result, will not cover these transactions or funds resulting in many to carry the cash on them. In addition, research is extremely limited, creating a catch twenty-two scenario of needing research to decriminalize it but it is a felony to research it without approval.

Reclassifying the drug has faced political headwinds, but in recent weeks, the Drug Enforcement Agency (DEA) has received a request to consider classifying them from the Department of Health and Human Services. The memo obtained from Secretary Xavier Herra’s office has asked the Drug Enforcement Agency to reclassify them from a schedule 1 drug to a schedule 3 drug.

As a Schedule III drug, cannabis would remain federally prohibited. However, the rescheduling would have major implications for researchers who have long criticized the Schedule I classification that creates significant barriers to access for studies.

“Following the data and science, HHS has expeditiously responded to President Biden’s directive to HHS Secretary Becerra and provided its scheduling recommendation for marijuana to the DEA on August 29, 2023,” an HHS spokesperson said in a statement to Marijuana Moment on Wednesday. “This administrative process was completed in less than 11 months, reflecting this department’s collaboration and leadership to ensure that a comprehensive scientific evaluation be completed and shared expeditiously.”(2)

Cannabis at the federal level is still considered a highly illegal drug, resulting in a patchwork of state laws and regulations regarding its distribution. But the Biden administration has signaled they are open to reclassifying it to make sure that proper research is done, with the goal of potentially making it legal. But until that day, the rules on cannabis are based on state laws.

Edit October 2nd: Changed picture