Overview
- The DOJ order, signed Thursday by acting Attorney General Todd Blanche, moves FDA‑approved and state‑licensed medical cannabis from Schedule I to Schedule III.
- The change does not legalize recreational use under federal law, and the DEA plans expedited administrative hearings beginning in late June to weigh broader reclassification.
- Officials say the shift lowers federal barriers to clinical trials and patient access, since Schedule III drugs are recognized for medical use and carry a lower abuse risk than Schedule I substances.
- Industry analysts say the move could lift Section 280E limits that blocked normal tax deductions and make banking services easier to obtain, with the IRS expected to issue guidance on implementation.
- Investors cheered the news, with shares such as Tilray up about 14% and Canopy Growth, Aurora Cannabis, and Cronos Group also rising after the announcement.