Marijuana industry leaders respond to federal marijuana rescheduling announcement

Leaders across the cannabis industry, trade associations, advocacy groups, and legal experts responded Thursday following President Donald J. Trump’s announcement directing the federal government to reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act.

Missouri-based trade organization MoCannTrade called the move a long-awaited policy shift that could reshape the industry’s future. Executive Director Andrew Mullins said rescheduling will allow for expanded medical research while addressing longstanding tax inequities faced by state-licensed marijuana businesses.

“Cannabis rescheduling is a long-overdue federal policy shift, which will allow for much greater medical research and bring parity to licensed Missouri marijuana business by treating them like any other small businesses for tax purposes,” Mullins said. “MoCannTrade believes this momentous change in federal policy, combined with Missouri’s common-sense approach to cannabis legalization and expunging past, nonviolent cannabis offenses, sets Missouri up for decades of future success.”

Mullins also pointed to broader implications for patients and providers.

“This level of recognition for cannabis as medicine, along with a renewed focus on the medical uses of marijuana and CBD, is a huge win for physicians, patients, and consumers in the U.S.,” he said. “Federal rescheduling of cannabis removes barriers and creates opportunity for the 40 U.S. states, including Missouri, that have legalized medical and or adult use cannabis, and no other state in the country is as well-positioned as Missouri to take advantage of this reform.”

Missouri operators echoed those sentiments. BeLeaf Medical CEO Kevin Riggs said the announcement represents overdue federal recognition of the industry’s legitimacy.

“Since we started as the first licensee in Missouri, we have long awaited additional support from the federal government,” Riggs said. “This long-overdue direction from the president should allow companies to continue to expand research as well as begin to level the playing field for a growing category.”

Riggs also emphasized the role that regulated cannabis plays in public safety and economic development.

“Legal cannabis companies provide tested and safe products and continue to drive illegal and dangerous operators out of business,” Riggs said. “Missouri cannabis has contributed more than $80 million to veterans and created more than 20 thousand jobs in the industry.”

Legal and financial professionals also highlighted the tax implications of rescheduling.

Eric M. Walter of Armstrong Teasdale said the change should provide immediate operational relief.

“Once implemented, rescheduling will deliver relief from 280E’s punitive tax impact,” Walter said. “My clients will finally be allowed the deductions every other business receives. In addition, I believe rescheduling is a huge step toward further normalizing the industry.”

Industry operators outside Missouri concurred with Walter’s statement.

   

Nicolas Guarino, co-founder and CEO of Jaunty and co-founder of the Empire Cannabis Manufacturers Alliance, said, “Rescheduling is a critical step toward fully integrating cannabis into the mainstream economy.” Guarino continued. “Section 280E has been one of the greatest burdens on operators across the supply chain, and rescheduling would allow cannabis businesses to be taxed like any other legal industry.”

Multi-state operator MariMed Inc. CEO Jon Levine said the decision formally recognizes cannabis’ medical use and removes longstanding barriers for compliant operators.

“This is the single greatest cannabis reform in U.S. history and will have far-reaching benefits for years to come,” Levine said. “Most important, the reclassification means the federal government officially acknowledges that cannabis has widely accepted medical uses and low abuse potential.”

National advocacy organizations framed the move as meaningful but incomplete. Cannabis Freedom Alliance Executive Director Geoffrey Lawrence said the organization welcomed the action while emphasizing the need for congressional follow-through.

“Cannabis Freedom Alliance would like to thank President Trump for taking the historic and long overdue action of moving marijuana out of Schedule I,” Lawrence said. “This executive action is just one step toward better and smarter cannabis policy.”

Policy groups similarly welcomed the announcement while urging safeguards for state authority. Americans for Prosperity Policy Fellow Graham Owens said rescheduling aligns federal law more closely with state cannabis policy.

“It will help the current cannabis industry be treated more like any other business and provide critical access to research and care,” Owens said. “Fully descheduling cannabis is still the ideal, however, as it would remove federal prohibition without mandating state policy one way or the other.”

Criminal justice and public health advocates acknowledged progress while underscoring unresolved issues. Kat Murti, Executive Director of Students for Sensible Drug Policy, said rescheduling reflects a shift toward evidence-based policy but falls short of comprehensive reform.

“Rescheduling represents a small but meaningful step toward evidence-based drug policy,” Murti said. “It is far from legalization and will not stop arrests or repair the substantial damage caused by decades of harmful enforcement.”

Law enforcement reform advocates also highlighted lingering contradictions between federal and state law. Diane Goldstein, retired lieutenant and Executive Director of Law Enforcement Action Partnership, said rescheduling may reduce arrests and expand research, but does not resolve core conflicts.

“Moving marijuana to Schedule III may help reduce unnecessary arrests, expand research, and ease barriers to legitimate banking,” Goldstein said. “But it does not resolve the fundamental conflict between federal law and the reality that most states have already legalized medical or adult use.”

While industry leaders broadly welcomed the announcement, many noted that rescheduling does not equate to federal legalization. Stakeholders across the sector emphasized that additional congressional action will be required to address banking access, interstate commerce, criminal justice reform, and long-term regulatory clarity.

George Jage, Co-Founder & CEO at Jage Media, summarized this sentiment, calling the order historic while reinforcing the long-term need for more, “This is the most significant federal policy change for cannabis since Nixon created the Controlled Substances Act in 1971.” Jage continued, “There remain many questions on how, when, and what this will do to impact the cannabis industry, but at a minimum, it will eliminate the onerous tax code that has kept companies from being profitable, raising capital, and investing in their business. That is a huge win. Let’s hope this is accompanied by safe banking that eliminates further unwarranted costs to operators and eventually allows dispensaries to take credit and debit cards.”