UPDATE: In a groundbreaking move, President Donald Trump has signed an executive order reclassifying marijuana from a Schedule I drug to a Schedule III drug as of July 15, 2023. This pivotal change shifts marijuana from a category that includes heroin to one that encompasses medications like Tylenol with codeine, marking a significant softening of the federal government’s stance on cannabis.
This reclassification could have profound implications for the cannabis industry and medical research across the nation. “This classification order will make it far easier to conduct marijuana-related medical research,” Trump declared during his signing ceremony in the Oval Office. Experts believe this could unlock new avenues for studying the benefits and risks associated with marijuana.
Dr. Hillary Marusak, an associate professor at Wayne State University, emphasized the challenges researchers face due to federal illegality. “It’s really difficult to do this type of work. It’s still illegal at the federal level,” she stated, expressing her excitement about the potential for new treatments, particularly for conditions like anxiety and PTSD.
At the forefront of the Michigan cannabis scene, Natalia Cardenas, manager at New Standard Cannabis, has witnessed firsthand how marijuana aids customers with various health issues. “Back pain, knee pains, and now we have topicals for them. This will only get better with research,” she said, highlighting the human impact of this legislative shift.
However, while many celebrate the reclassification, experts like Marusak caution that it doesn’t necessarily equate to increased research funding, which remains crucial for advancing cannabis science.
Another significant impact relates to Section 280-E of the IRS tax code, which has severely restricted business deductions for cannabis companies. Nick Hannawa, chief legal counsel at Puff Cannabis Company, stated, “We are one of the most harshly taxed industries in the entire country.” He projects that the change will result in “millions and millions of dollars” in tax relief, allowing cannabis companies to operate on a level playing field with other businesses.
Despite the positive implications, there are still hurdles to overcome. “This order does not federally legalize marijuana,” cautioned Ross Sloan, senior vice president for cannabis banking at Dart Bank. While the reclassification could encourage investment, it is unlikely that dispensaries will soon accept credit cards.
The political landscape remains divided, even among Republicans. Senators Cynthia Lummis, John Hoeven, and Lindsey Graham have expressed opposition, voicing concerns about the potential dangers of marijuana.
The cannabis industry now looks to the future, with the SAFER Banking Act on the horizon, which aims to ease banking challenges for cannabis companies. As this story develops, the implications of Trump’s order are expected to unfold, reshaping both the industry and the landscape of cannabis research.
Stay tuned for more updates as this urgent news continues to evolve.
