News: President Trump Signs Executive Order To Reschedule Cannabis As Less Dangerous Drug.
- Manuel Basegla
- Dec 19, 2025
- 2 min read
Published 6AM EST, Fri Dec 19, 2025
On Thursday, President Donald Trump signed an executive order directing U.S. Attorney General Pam Bondi to move marijuana from Schedule I, a category reserved for illegal drugs such as heroin and LSD, to Schedule III, which is used for drugs with accepted medical benefits that still have addiction potential, including steroids, ketamine and Tylenol with codeine.
President Donald Trump signed an executive order directing the U.S. Attorney General to begin the process of reclassifying marijuana from Schedule I to Schedule III under the Controlled Substances Act. This marks the most significant shift in U.S. drug policy since 1970 and formally acknowledges cannabis as having legitimate medical uses and lower abuse potential than substances like heroin. While the order does not immediately change the law, it initiates a federal rulemaking process that includes public comment and potential legal challenges, signaling a major change in how the federal government views cannabis.
Despite the historic nature of the move, marijuana remains illegal at the federal level. Schedule III status still imposes restrictions on manufacturing, distribution, and possession, and state-regulated cannabis markets will continue to operate in legal conflict with federal law. Cannabis companies will not gain access to U.S. stock exchanges, and the dispensary-based model remains federally unlawful. However, the announcement boosted investor confidence, driving sharp increases in cannabis stock prices and renewing interest across the sector.
The rescheduling is also expected to expand medical research and pharmaceutical development. Scientists will face fewer barriers to studying cannabis, and drugmakers developing cannabis-derived medicines—such as FDA-approved CBD and THC formulations—stand to benefit. Advocates and analysts describe the move as symbolically powerful but caution that tangible policy changes will be limited without broader reforms like full descheduling or legalization.
The most immediate and transformative impact of Schedule III is the elimination of the punitive IRS 280E tax rule, which has treated cannabis businesses as illegal drug traffickers and driven effective tax rates near 60%. Removing this burden could unlock billions of dollars, stabilize businesses, and allow capital to flow back into cultivation, genetics, and R&D. For breeders and seed banks, this shift is especially meaningful: expanded research access and federal recognition of medical value could legitimize genetic development, terpene and cannabinoid research, and intellectual property protection. While federal illegality still limits interstate commerce and seed distribution, Schedule III lays critical groundwork for a future where cannabis genetics are treated more like agricultural and pharmaceutical assets—opening the door to formal breeding programs, improved compliance pathways, and eventual integration into global seed and biotech markets.
Source: Forbes
