DEA's Move To Reclassify Cannabis Seen As 'Significant,' But Fails To Resolve State-Federal Conflict

For the first time ever, the Drug Enforcement Administration (DEA) has reportedly called for ‘botanical cannabis' to be reclassified under federal law.

The DEA's decision, as reported Tuesday by the Associated Press, to move cannabis from Schedule I to Schedule III of the US Controlled Substances Act comes eight months after the Department of Health and Human Services requested the DEA make changes to cannabis’ onerous classification, which put it in a category with heroin and meth. Cannabis has remained classified as a Schedule I controlled substance since 1970.

The DEA's determination must be reviewed by the White House Office of Management and Budget, according to the AP.

Commenting on the decision, NORML Deputy Director Paul Armentano said, "It is significant for these federal agencies, and the DEA and FDA in particular, to acknowledge publicly for the first time what many patients and advocates have known for decades: that cannabis is a safe and effective therapeutic agent for tens of millions of Americans."

NORML, the National Organization for the Reform of Marijuana Laws formed in 1970, is the oldest cannabis legalization advocacy group in the U.S.

Also Read: THC Beverage Sector Is ‘Probably Bigger Than We Realize,’ Say Industry Experts And It’s Not Too Late To Get In

Armentano cautioned, however, that reclassifying cannabis as a Schedule III substance would not immediately address the growing chasm between federal law and the laws of most states that currently regulate cannabis for either medical or adult use.

"The goal of any federal cannabis policy reform ought to be to address the existing, untenable divide between federal marijuana policy and the cannabis laws of the majority of US states," he said. "Rescheduling the cannabis plant to Schedule III fails to adequately address this conflict, as existing state legalization laws — both adult use and medical — will continue to be in conflict with federal regulations, thereby perpetuating the existing divide between state and federal marijuana policies."

Historically, Schedule III substances have received explicit market approval by the FDA; they are only legal to possess when obtained in licensed pharmacies under a physician's prescription.

"Just as it is intellectually dishonest and impractical to categorize cannabis in the same placement as heroin, it is equally disingenuous and unfeasible to treat cannabis in the same manner as anabolic steroids and ketamine," Armentano said. "The majority of Americans believe that cannabis ought to be legal and that its health risks are less significant than those associated with federally descheduled substances like alcohol and tobacco. In fact, HHS reached a similar conclusion regarding cannabis' safety profile in its own analysis.”

This is the fifth time that a cannabis rescheduling petition has been decided by the DEA. The agency rejected a similar petition in 2016.

The DEA's rescheduling decision does not take immediate effect. The agency must first accept public comments, during which time interested parties can formally request administrative hearings to further debate the issue.

Only following public comments and a possible judicial review will the agency issue its final determination. Changes in marijuana's federal status will then take effect 30 days following publication of the DEA's final rule in the Federal Register.

If you are interested in the financial outcomes of the cannabis industry, then you might be interested in attending Benzinga's Cannabis Capital Conference in Chicago on Oct. 8-9. Network with key industry players, hear from the top operators, and close deals that will shape the future. Act now— spots are filling fast. Get your tickets here.

Now Read: Revenue Down, Margins Up: Lifeist's Q1 Financial Results Show Focus On Premium Products Curbed Revenue Drop

Image generated using artificial intelligence via Midjourney.