SEATTLE (AP) — President Donald Trump’s decision to reclassify state-licensed medical marijuana as a less dangerous drug is a boon for the industry: It provides dispensaries a significant tax break, facilitates research on cannabis, and could enable the export of marijuana to international markets.
This move might be only the first step, as a hearing at the end of June could result in broader reclassification that would benefit state-licensed recreational markets as well. Boston-based cannabis attorney Jesse Alderman expressed optimism, saying, “This is a signal that this administration means business on getting this done.”
While the new order does not legalize marijuana for medical or recreational use under federal law, it alters the regulatory landscape by shifting licensed medical marijuana from Schedule I — reserved for drugs deemed to have no medical use and high abuser potential — to the less strictly regulated Schedule III.
A Long-Sought Shift
This policy transition marks a significant departure for the U.S. government, which has historically enforced prohibition, despite the fact that all states except Idaho and Kansas have approved some form of cannabis since California legalized medical marijuana in 1996. Presently, two dozen states and Washington D.C. allow recreational use, generating billions in tax revenue, while forty states have systems for medical marijuana, further illustrating a pressing need for revised regulations.
Douglas Hiatt, a Seattle attorney, reflected on the challenges faced by cannabis activists during the 1980s and 1990s AIDS crisis when access to medical marijuana was fraught with legal peril.
Critics of reclassification argue that while it brings some benefits, it doesn’t address the pressing needs of patients and the complexities that arise from differentiating medical from recreational markets. If this artificial distinction is maintained, it raises all sorts of questions, said Josh Meisel, a sociology professor at California State Polytechnic University.
Moreover, experts have raised concerns regarding the stronger cannabis products currently available and the implications of a potentially misleading classification that suggests broad medical validation.
The reclassification opens the door for dispensaries to deduct business expenses on federal taxes, yet poses significant accounting challenges as many dispensaries serve both medical and recreational markets.
Despite the skepticism, industry proponents, like Michael Bronstein of the American Trade Association for Cannabis and Hemp, praise the order as a critical advancement in cannabis policy over the past fifty years. However, legalization opponents warn against the potential consequences of normalization without adequate research and regulation.
As the dissonance between ongoing federal prohibition and state-level legalization continues, the push towards cannabis industry legitimacy and mature regulation is likely to unfold throughout the remainder of Trump's administration.
