The abrupt dismissal of Attorney General Pam Bondi by President Donald Trump is unlikely to significantly alter the trajectory of cannabis rescheduling efforts, according to several individuals familiar with the situation.
Industry observers say the underlying dynamics remain unchanged, regardless of whether the Department of Justice is temporarily led by Todd Blanche or eventually by Lee Zeldin, who is widely viewed as the president’s preferred long-term appointee.
Trump has repeatedly stated his intention to reclassify cannabis, and sources indicate that efforts within the DOJ are already progressing. One person close to the process suggested that movement could come within the next one to two months.
Still, questions remain about what happens after a formal decision is made. Legal challenges are widely expected and could delay practical outcomes, including potential tax benefits for cannabis businesses.
The industry has been waiting for further action since Trump signed an executive order on December 18 directing the DOJ to reclassify cannabis as a Schedule III substance under federal law. That move went further than steps taken under former President Joe Biden, whose administration concluded that marijuana has recognized medical use but left the process unfinished amid regulatory disputes.
Trump’s stance is said to have been influenced in part by billionaire Howard Kessler, a longtime associate who has publicly credited CBD with helping him manage the effects of cancer treatment.
Some industry leaders have responded positively to Blanche’s interim leadership. Jushi Holdings’ Trent Woloveck noted that Blanche has already been involved in discussions surrounding the proposed rule. That familiarity, he said, could help avoid delays tied to onboarding a new official.
There are additional signs of momentum. According to federal records, Woloveck and a company lobbyist recently met with officials from the White House Office of Management and Budget (OMB), which oversees implementation of presidential directives. While no specific timeline was shared, the general sentiment within the industry suggests that rescheduling is increasingly seen as inevitable.
Another development fueling that sentiment is the launch of a pilot program by the Center for Medicare and Medicaid Services (CMMS) to cover certain CBD treatments. The initiative allows accountable care organizations to apply for participation. At least five have already done so, according to a CMMS statement.
While supporters view the program as a meaningful step forward, opposition remains active. Groups against cannabis reform filed a lawsuit challenging the CBD program, arguing that it failed to follow proper legal procedures. The groups have indicated they will pursue similar legal action if marijuana is formally rescheduled.
Despite the anticipated pushback, sources say officials within the DOJ are well aware of the legal risks and are preparing for them as the process moves ahead. Marijuana firms like TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) will be hoping that the rescheduling process is completed expeditiously so that the industry can adjust to that new regulatory framework.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CannabisNewsWire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
CannabisNewsWire
Denver, CO
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
CannabisNewsWire is powered by IBN
