Cannabis Industry Reacts to Rescheduling Proposal

Cannabis Rescheduling: A Step Forward with Mixed Reactions

WASHINGTON – The decision to reschedule cannabis has sparked a range of reactions, reflecting the high stakes involved for industry players beyond just financial considerations Cannabis Industry Reacts to Rescheduling Proposal

After months of speculation, the Department of Justice (DOJ) announced on Thursday its proposal to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA). This shift is expected to provide tax relief and other financial advantages for cannabis businesses and their workforce. While many in the industry view this as a major victory, others argue it falls short of bridging the gap between state and federal cannabis policies.

Jason Vedadi, CEO of Story Cannabis Company, praised the move as a significant step forward, anticipating increased private equity investments, tax benefits, and a boost in stock market confidence. Following the announcement, several publicly traded cannabis companies experienced notable share price gains, reinforcing investor optimism. Cannabis Industry Reacts to Rescheduling Proposal

Despite these economic advantages, some advocates believe the measure does not go far enough. NORML Deputy Director Paul Armentano acknowledged the benefits but criticized the proposal for failing to align federal policy with state laws. He emphasized that while the shift challenges long-standing misconceptions about cannabis, it does not fully modernize federal regulations.

Other advocates, like Kassandra Frederique of the Drug Policy Alliance, argue that rescheduling alone does little to address criminal justice concerns. She pointed out that under Schedule III, federal criminalization would persist, leading to continued arrests, deportations, and denial of social benefits for individuals with cannabis-related records.

Industry leaders offered varied perspectives on the impact of the decision. Some see it as a crucial milestone in normalizing cannabis policy, while others stress the need for full descheduling to resolve ongoing conflicts between federal and state regulations. Many also highlighted the potential for increased access to financial services, marketing opportunities, and global influence as the U.S. redefines its stance on cannabis.

While the DOJ’s proposal marks a historic shift, stakeholders continue to push for broader reforms that not only support business growth but also address the lingering effects of prohibition on marginalized communities.