TRUMP ADMINISTRATION ANNOUNCES HISTORIC CANNABIS RECLASSIFICATION‌ PLAN

2025-09-22

WASHINGTON, D.C.‌ –

In a landmark decision, President Donald Trump is planning to sign Executive Order 2025-02, reclassifying cannabis under federal law from Schedule I to Schedule III of the Controlled Substances Act. This monumental shift, coupled with accompanying legislative measures, constitutes the most significant drug policy reform in decades.

* Key Policy Components‌

1. Executive Action: Immediate Reclassification‌ Impact:‌

1) Removes cannabis from Schedule I (high potential for abuse, no medical use)
2) Places it in Schedule III (moderate potential for abuse, accepted medical use)
3) Enables federal tax deductions for cannabis businesses (Section 280E repeal)

2. Legislative Package:

1) The Cannabis Opportunity and Reinvestment Act (COR Act)‌
2) Chuck Grassley (R-IA) and Sen. Cory Booker (D-NJ)

3. Regulatory Framework‌

1) FDA Oversight:‌ Establishes safety and labeling standards
2) DEA Role:‌ Shifts from enforcement to compliance monitoring
3) Banking:‌ Full implementation of SAFE Banking Act

* Implementation Timeline‌

1. Immediate‌ DOJ stops prosecuting state-legal operations

2. Short-Term‌ Q4 2025 USDA and FDA begin rulemaking

3. Long-Term‌ 2026 Full UN treaty renegotiations

* Market and Political Reactions‌

1. Stock Surge:‌ Major cannabis companies (e.g., Canopy Growth, Curaleaf) up 40% in pre-market trading

2. Banking Sector:‌ JPMorgan, Bank of America announce cannabis banking services

3. International:‌ Canada and Mexico signal policy alignment discussions

* Next Steps‌

1. Treaty Revisions:‌ U.S. to lead UN Commission on Narcotic Drugs negotiations in 2026

2. State Implementation:‌ Guidance for states to align regulations with federal changes.

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