Cannabis regulation is constantly changing, with last week’s developments highlighting that the Drug Enforcement Administration (DEA) was expected to hold a hearing on the potential rescheduling of marijuana from Schedule I to Schedule III on December 2nd, a shift that could significantly impact cannabis policy and the industry. However, the hearing has been postponed until 2025, along with the announcement of the 25 participants involved in the recently moved hearing.
DEA’s Role in Marijuana Rescheduling
The DEA plays a crucial role in the classification of controlled substances in the U.S. The agency’s schedule system determines the legality and regulation of substances, with Schedule I being the most restrictive. Marijuana currently sits in this category alongside substances like heroin, despite its growing acceptance both medicinally and recreationally across multiple states.
In March, the Justice Department proposed moving marijuana to Schedule III, a less restrictive category. This proposal followed a scientific review that suggested cannabis has medical benefits, a stance supported by advocates who had hoped for a swift resolution. But let’s be real, it’s the federal government—changes were bound to be delayed.
Why Was the Hearing Delayed?
The most recent delay in the DEA’s marijuana rescheduling hearing, initially set for December 2, 2024, is a significant development. Chief Administrative Law Judge (ALJ) John Mulrooney issued an order requiring more information on the 25 participants selected to testify. The judge’s preliminary order highlighted a lack of clarity regarding whether participants support or oppose the rescheduling and how they qualify as “interested persons” under federal regulations.
The decision to postpone the hearing stems from administrative challenges and the need for what the judge is calling for transparent documentation. Participants must now provide detailed information, including their stances and potential conflicts of interest, by November 12th. This procedural requirement has pushed the hearing to the early months of 2025.
The Participants of Marijuana Rescheduling Hearing
The DEA has named 25 participants (provided by Tony Lange and the Cannabis Business Times) for the hearing, representing a broad range of interests, from industry groups to law enforcement and anti-marijuana lobbies. These participants include:
- Counsel for the Government
- Village Farms International
- National Cannabis Industry Association
- American Academy of Hospice and Palliative Medicine
- Cannabis Bioscience International Holdings
Hemp for Victory - State of Connecticut
- Massachusetts Cannabis Advisory Board
- Veterans Initiative 22
- The Doc App. Dba, My Florida Green
- The Commonwealth Project
- Saint Michael’s College
- National Drug and Alcohol Screening Association
- Smart Approaches to Marijuana
- International Academy on the Science and Impact of Cannabis
- Cannabis Industry Victims Educating Litigators
- National Transportation Safety Board
- Attorney General Mike Hilgers for the State of Nebraska
- International Association of Chiefs of Police
- Drug Enforcement Association of Federal Narcotics Agents
- American College of Occupational and Environmental Medicine
- Community Anti-Drug Coalitions of America
- Tennessee Bureau of Investigation
- National Sheriff’s Association
Impact on Cannabis Rescheduling
The rescheduling of marijuana holds significant potential for changing the legal and business landscape of cannabis in the U.S. Moving cannabis to Schedule III would signify federal acknowledgment of its medical benefits and potentially ease restrictions related to research, banking, and taxation for cannabis businesses.
Cannabis rescheduling is not just a legal matter; it is deeply intertwined with politics. The delay in the hearing aligns with the upcoming presidential election, which naturally complicates the timeline, which was originally the reason for the first move of the hearing.
Democratic presidential candidate Kamala Harris and GOP candidate Donald Trump have indicated support for federal cannabis rescheduling.
For the cannabis industry, rescheduling could unlock numerous opportunities. A shift to Schedule III would facilitate research, improve access to financial services, and reduce tax burdens, all of which are critical for industry growth. However, the delay introduces uncertainty that may affect business planning and investment.
The DEA seems committed to conducting a transparent proceeding, with the hearing set to be live-streamed and open to the media. This openness is crucial for public trust and understanding of the rescheduling process.
The public plays a crucial role in shaping cannabis policy. During the public comment period, tens of thousands voiced their support for rescheduling cannabis, with a significant number advocating for its complete removal from the CSA altogether. The DEA’s administrative hearing is part of a broader conversation about the future of cannabis regulation involving multiple stakeholders, including consumers, patients, businesses, and policymakers.
