While the Trump administration has taken a partial step toward rescheduling marijuana, the move has left many in the industry uncertain about what comes next.
Acting AG Todd Blanche recently signed an order moving certain cannabis-related products out of the most restrictive federal category. Specifically, products sold through state-licensed medical cannabis programs, along with those approved by the FDA, will move from Schedule I to Schedule III.
Despite the shift, policy experts caution that the change is limited in scope. Cat Packer, who oversees drug markets and legal regulation at the Drug Policy Alliance, said it would be misleading to describe the decision as a broad reclassification of marijuana. Instead, she characterized it as a narrow adjustment affecting only select categories.
Packer pointed out that the reference to FDA-approved cannabis products applies only to potential future medications, not those already on the market. She also raised concerns that the order appears to assume how such products will be scheduled without a full scientific review of risks and benefits.
The administration has justified its approach by referencing the Single Convention on Narcotic Drugs, a 1961 international agreement that the U.S. and dozens of other countries signed. The treaty restricts the production of certain controlled substances, including marijuana, to limited quantities for medical and scientific use.
However, Packer noted that there is ongoing debate about whether U.S. policy already conflicts with that agreement, given the widespread legalization of cannabis at the state level.
Some industry leaders say the latest announcement may have added complexity rather than clarity. Others suggest that the timing could be politically motivated, pointing to upcoming elections and efforts to appeal to certain voter groups.
Even so, they acknowledged that any sign of movement at the federal level is notable. The changes are expected to have the most immediate impact on the medical cannabis sector, though details on implementation remain unclear.
One issue highlighted by industry participants is the legal distinction between medical and recreational cannabis, even when the products themselves are identical. In many dispensaries, the same product may be sold under both categories, despite differences in how the law treats each transaction.
Packer noted that the shift could signal federal recognition of medical cannabis as legitimate treatment, which may help patients and caregivers avoid criminal penalties. Still, she cautioned that without clear guidelines, protections may not fully materialize. Patients could continue to face challenges related to housing, employment, or other areas where cannabis use remains stigmatized.
There are also concerns about equity. Because only medical cannabis businesses will be eligible to register with federal authorities under the new framework, the policy may favor operators who entered the market early. Packer noted that many Latino and Black entrepreneurs are more heavily represented in the recreational sector, due in part to barriers that existed in earlier medical programs.
Blanche also announced that the DEA will hold a hearing on June 29 to further examine cannabis scheduling. Still, experts say a complete reclassification or full legalization remains uncertain. Even if additional changes occur, Packer emphasized that they may not align with public opinion, which has increasingly supported broader legalization in recent years.
Marijuana firms like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) and their U.S. partners will continue to monitor developments on the regulatory front to glean what impacts this may have on the industry.
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