With cannabis rescheduling currently on hold indefinitely, the $32 billion industry’s fate hinges on critical decisions—particularly President Donald Trump’s choice of the next Drug Enforcement Administration (DEA) director.
Trump made waves in September by becoming the first presidential candidate from a major party to support a state-level recreational marijuana legalization ballot initiative. However, since then, the topic has not resurfaced in his agenda. It also remained absent during the confirmation hearings for his attorney general nominee, Pam Bondi.
In this information vacuum, speculation has emerged based on Bondi’s record and Trump’s posts on Truth Social. A notable detail is Bondi’s time as a lobbyist for Ballard Partners, a D.C.-based company. Ballard’s client list includes Trulieve Cannabis Corp., a multistate cannabis operator based in Tallahassee, Florida, though Bondi herself is not listed as a lobbyist for the company.
Trulieve’s CEO, Kim Rivers, attended Trump’s inauguration alongside Cresco Labs CEO Charlie Bachtell. Following the event, Rivers shared on X that she had productive discussions on cannabis reform and rescheduling, calling it “a new day” for the industry.
If confirmed, Bondi’s actions—along with Trump’s choice for DEA leadership—could shape the future of cannabis reform. This urgency has heightened after DEA judge John Mulrooney II halted the administrative process to move cannabis to Schedule III. Mulrooney’s January 13 order stopped hearings that were supposed to resume on January 21, citing a request to disqualify DEA director Anne Milgram due to allegations of bias against the process.
Rescheduling would significantly relieve the cannabis sector, allowing businesses to claim standard federal tax deductions currently prohibited under federal law. However, the timing and continuation of the rescheduling hearings remain uncertain. As Mulrooney noted in his order, he could recommend restarting the entire process, but any decision ultimately rests with the next DEA director.
Trump’s first nominee for DEA leadership, Chad Chronister, withdrew his name shortly after being nominated. Trump later claimed he had withdrawn the nomination himself. Observers believe Trump might select someone with deep ties to the DEA, and this seemed likely when Derek Maltz, a long-time DEA official and opponent of rescheduling cannabis, was appointed interim administrator.
Whether Maltz becomes the next director or serves temporarily, many doubt a Trump appointee would oppose his policy stance. Similarly, the GOP-controlled Congress is unlikely to challenge Trump’s directives, despite cannabis advocates’ efforts to push reform.
Under Biden, marijuana reform efforts stalled, including a Senate bill for banking protections that never reached a full vote. Blame for this failure varies, with some pointing fingers at the Republican opposition, while others blame Chuck Schumer, the former Senate Majority Leader. Speaker of the House Mike Johnson and Senate Majority Leader John Thune are not seen as advocates for cannabis reform.
Should the Trump administration prioritize rescheduling, it could drastically alter the trajectory of marijuana policy in the United States. All the eyes of marijuana industry actors like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) will be on the new team in Washington, D.C. to see what decisions they make and how those decisions shape the future of the industry.
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