Rescheduling...what now?

On December 18, 2025, the U.S. President signed and executive order to expedite the Rescheduling of Cannabis from a Schedule I substance to a Schedule III.

So, what happens now?

Immediately...? ?

Nothing.

The Executive Order was essentially a nudge to the Department of Justice (DOJ) & Drug Enforcement Agency (DEA) to finish their proposal for the new rules and laws surrounding cannabis in our country, which excited many when it was first presented in 2024.

Until those are finalized (and approved), it's all remains a waiting game with endless speculation.

So...lets speculate.

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I think most would agree that a couple known areas of impacts will be in relation to Taxation & Research.

Taxes:

The change in status means businesses would no longer be subject to the dreaded 280E Tax code, which currently prohibits the deduction of most normal operational expenses and results in higher rates (50%-70% or more).

Once unshackled from this code, and the ability to deduct basic expenses is granted, the industry will save billions. Yes, with a "B".

Personally won't be holding my breath for a raise, but still fair to say there will be an increase in opportunity.

Research:

The Schedule I classification made federal research almost impossible. However, with the shift to Schedule III, regulatory walls weaken and cannabis is revalidated as a medical option.

This means Universities, Pharma Companies, and federally backed researchers can now conduct clinical trials to further evolve our knowledge of the plant.

With time, this will expand the medical market further than ever before. Creating new and diversified cannabinoid therapy options, beyond just CBD & THC, and in the process, re-legitimizing cannabis as a medicine after decades of stigma and miseducation.

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A few other potential impacts that personally came to mind Consumption, Crime, & Banking.

Consumption:

Honestly, I don't actually see this being a popular topic of discussion, but for the everyday consumer out there who still struggles to find a safe sesh spot...just know nothing changes.

Cannabis remains illegal. There will be no overnight lounges, or green-friendly smoking areas.

Keep your secret rituals and consume at your own risk.

Crime:

Once officially reclassified, the penalties for relative non-violent crimes become less severe, which can be seen as a win. However, the discussion surrounding this topic has always mainly focused on those already incarcerated.

It's no secret that many still serve lengthy sentences for non-violet cannabis crimes due to a flawed system. Even modern day elected officials have expressed how they feel about the matter as we've seen a rise in mass pardons over the last few years. Regardless, rescheduling is not likely to have a full scale effect on the situation and pardons / expungements will remain a battle

However, this will provide power to those that still fight for freedom, and hopefully pave the way for continued change.

Banking:

This has been an adjacent issue since the first days of modern day dispensaries.

Most banks have shied away from working with cannabis businesses in fear of federal penalty, and it's likely that it will take more than rescheduling for banks to hold their doors open for this herbal industry.

But hopefully this will loosen the locks in the meantime and loans become more accessible to those in the cannabis space.

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As the list could go on and on, I'll choose to end here until more is known, or I just feel like revisiting.

If you have any insight or comments, please share and pay it forward.

-Happy Huffs