Is Weed Getting Legalized? No, But a Big Shift Is Coming
Key Takeaways
The DEA is considering reclassifying marijuana from Schedule I (most restricted) to Schedule III, potentially impacting research, business operations, and the legal landscape.
Reclassification wouldn't legalize recreational marijuana nationwide and wouldn't release people currently incarcerated for marijuana offenses.
Research could become easier under Schedule III, potentially leading to a better understanding of marijuana's therapeutic effects. Cannabis businesses might benefit from tax relief, but federal banking access remains an issue.
Opponents argue reclassification is insufficient and some legalization advocates want marijuana removed from the controlled substances list entirely.
The US Drug Enforcement Administration (DEA) is potentially ready to reclassify marijuana, a move that could greatly impact research, business operations, and the legal landscape of cannabis in the United States.
President Biden directed a review of marijuana's classification in 2022, and the Department of Health and Human Services (HHS) has recommended moving it from Schedule I (the most restrictive category) to Schedule III.
What Does Reclassification Mean (and What Doesn't it Mean)?
Currently, the proposal awaits approval from the White House Office of Management and Budget, followed by a public comment period and an administrative judge review. This process could be lengthy. Even if approved, reclassification wouldn't immediately change the legal status of marijuana.
Marijuana would remain a controlled substance under Schedule III. While some medical uses would be recognized, recreational cannabis wouldn't be legalized federally. People currently incarcerated for marijuana offenses likely wouldn't be released as a direct result of reclassification.
The Schedule I classification has severely hampered marijuana research due to the difficulty of obtaining permits for clinical trials. Reclassification to Schedule III could streamline research efforts, although challenges might persist regarding sourcing marijuana from state-licensed dispensaries and navigating FDA oversight.
Researchers remain optimistic about the potential for better studies on marijuana's therapeutic effects.
Taxation and Banking
Cannabis businesses currently face a significant tax burden due to limitations on deducting expenses under federal tax code.
Schedule III drugs are exempt from this restriction. This could strengthen state-legal cannabis programs and make them more competitive with illegal operations.
However, access to traditional banking services might remain limited due to the federal illegality of marijuana. The SAFE Banking Act, which would address banking concerns, has passed the House but stalled in the Senate.
What Criticisms Are There?
Opponents, including the anti-legalization group Smart Approaches to Marijuana, argue that reclassification contradicts scientific evidence and caters to the cannabis industry.
Some legalization advocates view reclassification as an insufficient step, pushing for complete removal from the controlled substances list. They argue that the current system creates confusion and perpetuates racial disparities in marijuana arrests.