Downgraded from Schedule I to Schedule III
President Donald Trump of the United States signed an executive order on December 18 (local time) to ease federal regulations on marijuana. As a result, marijuana will be reclassified as a drug with a lower regulatory schedule, and federal oversight is expected to become less stringent.
After signing the executive order containing these measures, President Trump stated, "This decision is in response to the needs of American patients suffering from severe pain, incurable diseases, aggressive cancers, seizure disorders, and neurological conditions."
Under this action, the U.S. Department of Justice will begin the process of reclassifying marijuana from a Schedule I controlled substance to a Schedule III drug. Currently, marijuana is classified alongside heroin and LSD as a Schedule I substance, which is defined as having no accepted medical use and a high potential for abuse, making it subject to the strictest regulation. In contrast, Schedule III drugs are recognized for their medical benefits and are considered to have a relatively lower potential for abuse.
The reclassification of marijuana is expected to mark a significant turning point for the marijuana industry, which has long called for clear federal regulatory standards. If regulations are eased, clinical research is likely to expand, and the development of marijuana-based pharmaceuticals reviewed by the U.S. Food and Drug Administration (FDA) is expected to become more streamlined. There is also a strong possibility that major pharmaceutical companies will enter the medical marijuana market.
In particular, this measure is expected to significantly reduce the tax burden on companies involved in the marijuana industry, as punitive tax rules that have applied to businesses handling federally illegal substances may be relaxed.
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