Rescheduling Cannabis: 4 Potential Effects Of A Shift To Schedule III

Cannabis is currently listed as a Schedule I drug, meaning the Drug Enforcement Agency (DEA) considers it to have a high potential for abuse and no medical applications. The cannabis industry — and much of the general public — has known this to be patently untrue for many years, and it looks as if lawmakers might be finally catching up; there is talk of rescheduling cannabis to Schedule III in the coming months.

Though federal legalization is the ultimate goal, rescheduling is a step in the right direction and could provide countless opportunities for further development. As a longtime cannabis industry professional and a leader of multiple cannabis companies, I can speak to the effects that rescheduling cannabis could have on the medical, financial, commercial and regulated cannabis industries — and how your cannabusiness can prepare for these potential changes. 

1. Paving a Path for Future Regulatory Advancements

Though de-scheduling is the ultimate goal for the cannabis industry, rescheduling could help us get there.

Rescheduling could eventually make it possible for medical and adult-use cannabis to be regulated differently. Perhaps medical cannabis will be regulated like pharmaceuticals, similar to in Europe; recreational cannabis could be regulated similarly to alcohol and tobacco.

A shift in scheduling could also help motivate a shift in public perception of cannabis. Rescheduling and the resulting changes in regulation, shifts in public perception, and proof of concept could help provide a path toward full federal legalization of cannabis which would, in turn, have an immeasurably positive impact on the cannabis industry and community alike.

2. Enabling Advances in Medical Marijuana Applications

Perhaps the most significant and impactful effects of the potential rescheduling of cannabis will influence the medical cannabis industry.

If and when lawmakers move cannabis to Schedule III, medical marijuana (MMJ) clinics will be able to operate much more effectively, potentially in a similar way to how pain management clinics do today. These changes will increase access to MMJ and allow patients to receive more convenient, comprehensive care.

Rescheduling will also revolutionize how medical professionals and researchers study cannabis. Currently, the Schedule I status of cannabis makes it extremely difficult for scientists to perform research on cannabis, even for medical applications. A shift to Schedule III will make it much easier for researchers to access needed materials to conduct studies and trials. Countries with more lenient — and rational — cannabis laws have already seen massive progress in the medical cannabis industry. Due to the legal status of cannabis in Israel, for example, Tikun Olam has been able to perform incredible research that has improved the lives of countless individuals. 

There are more than three million medical cannabis patients in the United States. Rescheduling would enable greater oversight of medical cannabis programs and allow researchers to essentially use all current and future MMJ patients as data points in their studies; this level of data would be invaluable in improving medical cannabis care and formulating more effective treatment plans. With a shift to Schedule III, researchers in the medical cannabis industry would be able to revolutionize the way cannabis drug discovery and research happens.

3. Facilitating Financial Growth in the Cannabis Industry

Though the cannabis industry has seen massive growth over recent years, the legal status of cannabis inherently limits this growth. It’s difficult for cannabis companies to list on the New York Stock Exchange or NASDAQ, making it difficult for interested parties to invest in up-and-coming cannabusinesses.

Rescheduling would make it much easier for cannabis companies to be a part of the financial landscape in the United States, securing funding and contributing to the economy. Cannabrands that ensure full compliance and begin listing on a national stock exchange early could even receive valuation premiums, giving them access to even greater capital. =

Investors and individuals have wanted to invest in cannabis since the first states began establishing regulated markets. A shift to Schedule III would make it possible for these investors to contribute money to the cannabis industry, potentially resulting in massive growth across the whole sector — and especially for cannabis companies that are poised and ready to take advantage of these financial opportunities. 

4. Creating Opportunities for Complying Cannabusinesses to Thrive

Even in states with regulated cannabis industries, cannabusinesses face more challenges than companies in other federally recognized sectors. Rescheduling could change that and allow compliant cannabusinesses access to the same benefits and opportunities available to non-cannabis companies.

The most pertinent example is banking; cannabis companies have minimal access to traditional financial institutions. A shift to Schedule III and the implied federal approval of cannabis could allow cannabis companies to access traditional financial resources more easily through conventional banks and financial services. Though measures like the SAFER Banking Act are under consideration by policymakers, cannabis rescheduling would help move the process along and create even more opportunities for cannabusinesses to grow and thrive.

Rescheduling could potentially allow cannabis companies other opportunities to grow, too. Retail cannabis stores face difficulties securing storefronts due to regulations and property owners' reluctance to lease non-federally approved businesses. A shift to Schedule III could enable cannabis companies to access real estate more effectively and streamline their operations as they access the same tools and opportunities as companies in other business sectors. 

Rescheduling Would Open Doors for Every Sector in the Cannabis Industry

The potential designation of cannabis as a Schedule III drug would facilitate growth and expansion for companies throughout the cannabis industry. In the face of exciting changes, my companies are prepared to act quickly and take advantage of the opportunities rescheduling will provide in the legal, medical, financial, and commercial cannabis sectors. I am elated to be a part of this growing industry, and I can’t wait to see how rescheduling unfolds over the coming months.

This article is from an external unpaid contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.