DOJ Moves FDA-Approved and State-Licensed Medical Cannabis to Schedule III

Overview

• The Justice Department, which announced the change Thursday, moved FDA-approved cannabis and state-licensed medical marijuana from Schedule I to Schedule III.
• The action does not legalize recreational use and products outside state medical programs remain classified as Schedule I under federal law.
• The order lowers barriers to clinical studies and lets licensed medical cannabis businesses claim standard federal tax deductions for the first time.
• Administrative hearings set for late June will consider whether to expand reclassification across more cannabis products under federal law.
• Publicly traded cannabis stocks rose after the news, though federal banking limits still constrain many operators that cannot access routine financial services.