Public Hearing On Adult-Use Marijuana

Yesterday afternoon, the Washington Post and other sources reported that President Trump is expected to issue an executive order directing federal agencies to reclassify marijuana...

Alexander G. Malyshev and Sarah H. Ganley examine the final order rescheduling cannabis from Schedule I to Schedule III of the Controlled Substances Act. The analysis clarifies that this rescheduling applies specifically to medical cannabis and does not constitute federal legalization of cannabis.

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, the DEA decided to pause its consideration of adult-use marijuana rescheduling.

The House has passed a short-term funding bill postponing the federal ban on hemp-derived THC products from November 12th to December 11th. With comprehensive legislation unlikely before the new deadline and competing interests from cannabis sellers, alcohol producers, and state regulators creating policy gridlock, the future of intoxicating hemp products remains uncertain as midterm elections approach.

On November 12, 2025 the President signed the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (H.R. 5371) into law.

The landscape surrounding Section 280E of the Internal Revenue Code continues to evolve with President Trump's Executive Order on medical marijuana rescheduling, advancing litigation in New Mexico Top Organics v. Commissioner, and shifting regulatory signals. Cannabis taxpayers face critical decisions about taking "non-280E" positions on their tax returns while the IRS maintains its enforcement stance and the U.S. Tax Court case addressing common arguments remains pending.

On April 22, 2026, a final order issued by the acting U.S. attorney general and the Drug Enforcement Administration took effect, fundamentally altering the federal regulatory landscape for marijuana.

The DEA's marijuana rescheduling hearing has been unexpectedly stayed following a motion to admit a new GAO report examining agency scheduling procedures. With the proceeding on hold and the medical marijuana Schedule III order facing legal challenges in the D.C. Circuit, the cannabis industry's path to federal tax relief through rescheduling has become increasingly uncertain.

On April 23, 2026, U.S. Attorney General Todd Blanche signed a final order moving FDA-approved marijuana drug products and state-licensed medical cannabis from Schedule I to Schedule III of the Controlled Substances Act.

Multiple news sources reported today that the DEA will be recommending rescheduling cannabis to a Schedule III drug.

California has enacted a groundbreaking AI disclosure law requiring advertisers to clearly identify when synthetic performers appear in their marketing materials. The legislation, set to take effect in 2027, includes a private right of enforcement that could potentially open the door to class action litigation against brands using AI-generated performers without proper disclosure.

Virginia's Cannabis Control Authority has released its initial draft of adult-use marijuana regulations, outlining application fees, license caps, and the approval process for the state's anticipated July 2027 launch of recreational cannabis sales. While the draft provides crucial details on licensing requirements and ownership restrictions, significant questions remain about the application timeline and evaluation criteria that will determine which entities receive coveted permits.

Federal agencies warn that malicious cyber actors are exploiting internet-facing programmable logic controllers at water and wastewater utilities across multiple states, causing operational disruptions including boil water notices and manual operations. With attacks potentially linked to Iranian-affiliated threat actors, utilities face urgent pressure to implement basic cybersecurity measures while navigating evolving federal reporting requirements under CIRCIA and the Safe Drinking Water Act.

The FDA, in collaboration with federal partners, held a landmark public hearing on September 14, 2026, to gather input on the future therapeutic use of psychedelic drugs, drawing over 18,000 registered attendees. This hearing represents one of the earliest implementations of Executive Order 14401, which directs federal agencies to expedite research, review, and approval of psychedelic drugs for serious mental health conditions.

The Office of the Comptroller of the Currency has proposed new regulations that would impose Bank Secrecy Act and sanctions compliance requirements on permitted payment stablecoin issuers under its jurisdiction. This rulemaking, coordinated with FinCEN and OFAC, establishes anti-money laundering, counter-terrorism financing, and sanctions program standards for stablecoin issuers as part of the broader implementation of the GENIUS Act framework.

The landscape surrounding Section 280E of the Internal Revenue Code continues to evolve with President Trump's Executive Order on medical marijuana rescheduling, advancing litigation in New Mexico Top Organics v. Commissioner, and shifting regulatory signals. Cannabis taxpayers face critical decisions about taking "non-280E" positions on their tax returns while the IRS maintains its enforcement stance and the U.S. Tax Court case addressing common arguments remains pending.

A federal court in New Jersey has declared that state-mandated labor peace agreements for cannabis licensees are preempted by federal labor law, creating immediate questions for operators across the state. With the decision now under appeal to the Third Circuit and similar challenges advancing nationwide, licensed cannabis businesses must carefully evaluate their existing agreements and compliance obligations.

The seventh edition of the Singapore International Centre's Arbitration Rules ("SIAC Rules 2025")1 came into effect on January 1, 2025, nine years after the last iteration.

Congress and the Administration are rapidly escalating scrutiny of China-linked biotechnology operations through new legislation targeting patents, investments, and procurement.

CMS is expanding its ACCESS Model in spring 2027 to include five new tracks covering heart failure, COPD, substance use disorders, tobacco cessation, and extended musculoskeletal support. The expansion emphasizes symptom management, quality of life, and technology-enabled care for individuals with serious or chronic conditions, creating meaningful new pathways for palliative-style care within Medicare reimbursement. With 160 participating organizations and major health payers pledging to adopt outcomes-base