Cannabis Rescheduling: DOJ Announces Rescheduling Of Certain Products

Highlights

• The U.S. Department of Justice (DOJ) and U.S. Drug Enforcement Administration (DEA) have issued an order immediately placing U.S. Food and Drug Administration (FDA)-approved products containing marijuana and marijuana products regulated by a state medical marijuana license in Schedule III of the Controlled Substances Act (CSA).
• This is the biggest federal shift on cannabis regulation since 1970. The order relies on the U.S. Attorney General's treaty-based obligation to enforce the CSA and authority to unilaterally reschedule these products to comply with international obligations.
• Change to payment card networks might be slow, but this change could increase the number of financial institutions willing to provide account-to-account automated clearing house transactions for medical cannabis operators.