U.S. Eases Federal Restrictions on Medical Cannabis by Rescheduling to Schedule III

The recent decision by the Justice Department and Drug Enforcement Administration to reschedule certain medical cannabis products to Schedule III marks a significant shift in U.S. federal drug policy. This reclassification affects FDA-approved marijuana products and those covered by state-issued licenses, reducing the regulatory barriers these substances have faced. More details on this development can be found here.

Issued by Acting Attorney General Todd Blanche, the order implements an executive directive from December 2025, aimed at fostering research into both medical cannabis and cannabidiol. Traditionally, changes to the Controlled Substances Act’s scheduling would necessitate a scientific and medical evaluation from the Department of Health and Human Services. However, Blanche invoked a lesser-used legal mechanism that allows for scheduling adjustments to meet international obligations under the 1961 Single Convention on Narcotic Drugs.

The treaty-focused structure of the order aligns with international requirements for prescriptions, licensed manufacturing, production quotas, and other controls, essential for compliance with the Single Convention. Consequently, these cannabis products are now also subject to permits for import and export. For businesses currently holding state medical marijuana licenses, the new regulation establishes a more streamlined federal registration process, expediting their ability to operate legally at the federal level under 21 CFR Part 1301.

This move has been heralded as a step toward enabling further research into the safety and effectiveness of medical cannabis, potentially leading to improved patient care and more reliable guidance for healthcare providers.

In a related development, the DEA is set to conduct a new administrative hearing on June 29 regarding the potential reclassification of marijuana itself from Schedule I to Schedule III. This upcoming hearing follows the withdrawal of a previous notice issued in 2024 under the Biden administration. If successful, such a reclassification would align marijuana with substances like ketamine and anabolic steroids, which fall under Schedule III due to their recognized medical uses despite potential for abuse.

Overall, these regulatory modifications reflect an evolving perspective on cannabis in federal policy, underscoring a commitment to expand research while maintaining adherence to international drug control norms. The implications for the medical marijuana industry are significant, with potential impacts on research, investment, and patient access likely to unfold as these changes are implemented.