Cannabis Reclassification: Timeline And Impact

The federal government has started to reclassify cannabis. When, and if, that reclassification is finalized, licensed cannabis businesses should see dramatically higher after-tax income and access to services from credit card companies and other financial institutions.

The United States Drug Enforcement Administration ("DEA") has initiated the process to recategorize cannabis from a Schedule I drug to a Schedule III drug under the Controlled Substances Act (the "Act"). Under the Act, Schedule I substances are defined as those with no currently accepted medical use and a high potential for abuse. In contrast, Schedule III substances are considered to have accepted medicinal value with a relatively low potential for abuse.