Michigan’s once-thriving medical cannabis market has dwindled to a fraction of its former size, recording only $322,350 in sales in May, according to figures released by the state Cannabis Regulatory Agency.
Despite that decline, an ongoing federal dispute over marijuana policy could have major financial implications for cannabis operators across Michigan and neighboring Ohio.
The discussion gained momentum this week after the National Organization for the Reform of Marijuana Laws (NORML) urged the DEA to revisit its decision regarding participants in an upcoming federal hearing on marijuana classification. The organization argues that consumers, patients, industry representatives, and reform advocates have been left out of proceedings scheduled to start June 29.
At the center of the hearing is a proposal that would move cannabis from Schedule 1 to Schedule 3 under federal law. Supporters say such a shift could ease tax burdens on cannabis businesses, encourage scientific research, and strengthen the standing of state-regulated marijuana programs.
Opponents, however, contend that the hearing process has been skewed from the start. They argue that many of the selected witnesses and organizations are critical of marijuana reform or oppose reclassification altogether.
The debate comes at a time when Michigan’s medical cannabis market has largely faded. More than a decade ago, the state’s medical program served over 300,000 registered patients and represented the only legal avenue for purchasing cannabis.
Today, adult-use sales dominate the market. In May alone, recreational cannabis generated more than $250 million in Michigan, vastly overshadowing medical sales.
Ohio presents a different picture. The state continues to support a sizable medical cannabis program alongside recreational sales, with more than 459,000 registered patients and 165 dual-use dispensary licenses reported in 2025.
Because the federal proposal is based on recognition of cannabis as a medical treatment, the outcome may carry particular weight for Ohio operators.
NORML maintains that excluding key stakeholders raises concerns about fairness and creates the impression that the process may favor a predetermined conclusion. The DEA has not indicated whether it will revise the list of participants before the hearing begins.
Even after testimony concludes, experts expect legal challenges and procedural disputes that could delay a final decision. For cannabis businesses in Ohio and Michigan, the outcome could shape whether the industry continues facing a tax structure rooted in federal prohibition or moves closer to the treatment afforded to other regulated sectors of the economy.
The future trajectory and strategy of cannabis firms like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) will be largely impacted by any final decision published after the rescheduling process is completed.
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