What Cannabis Rescheduling Means for the U.S.: Pros and Cons

In 2024, the U.S. is seeing potential major changes to cannabis regulation with the DEA’s proposal to reschedule cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act (CSA). This shift is being considered in response to growing public support for cannabis reform and recommendations from the Department of Health and Human Services (HHS). However, the move is not without controversy.

What is Cannabis Rescheduling?

Currently, marijuana is classified as a Schedule I drug, alongside substances like heroin and LSD, which indicates a high potential for abuse and no accepted medical use. If reclassified to Schedule III, cannabis would join substances like ketamine and anabolic steroids, which are recognized for their medical use and lower abuse potential​.

Potential Benefits of Rescheduling

1. Increased Medical Research:

   • Moving cannabis to Schedule III would remove some of the current restrictions on research. Medical institutions would have broader access to study marijuana’s effects, paving the way for more discoveries about its therapeutic potential.
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2. Tax Benefits for Cannabis Businesses:

   • Currently, cannabis businesses cannot deduct normal operating expenses due to IRS Code 280E, which applies to Schedule I and II substances. Rescheduling would allow these businesses to claim deductions like any other industry, potentially improving profitability.
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3. Legal Clarity for Medical Use:

   • Rescheduling could solidify marijuana’s place in medical treatment, encouraging more doctors to prescribe it and providing patients with better access.
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The Downsides of Rescheduling

1. Does Not Address Federal Criminalization:

   • Despite the reclassification, cannabis would remain illegal at the federal level for recreational use. Individuals could still face federal penalties for possession, particularly in states without legalized cannabis​.
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2. Social Justice Concerns:

   • Advocates argue that rescheduling doesn’t go far enough to address racial disparities and social equity. Many people, particularly those in minority communities, could still face consequences from previous cannabis convictions, and some of the systemic harms of the War on Drugs would remain​.
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3. Patchwork of State Laws Remains:

   Rescheduling won’t eliminate the complex differences between state and federal laws regarding cannabis. States with existing recreational cannabis laws would still operate in legal limbo concerning federal regulations​.
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Conclusion: A Step Forward or Not Enough?

While rescheduling cannabis to Schedule III is an important step toward cannabis reform, it is viewed by many as a compromise rather than a solution. For the cannabis industry, the benefits of tax reform and increased research are significant, but advocates continue to push for full decriminalization and legalization to address the lingering criminal justice and equity issues.