Federal Cannabis Policies

Last week we took a look at the definitions for Schedules 1-3 of The Controlled Substances Act. In summary,

Schedule 1 states that a substance has no medicinal value and high probability for addiction, and this is the current designation for marijuana federally.  But since the passage of state based legalization efforts for medicinal and recreational use, federal efforts to arrest and jail cannabis entrepreneurs have changed. 

Schedule 1

• No medicinal value
• High probability of abuse

One of the most notable developments during the Biden administration is the direction from the Office of the President for cannabis to move to a schedule 3 status.

Schedule 3 has some very different associations with it, like accepted medical value, and low probability for addiction and abuse.  It also eliminates the 280E restriction on deductible expenses for cannabis businesses.  It should be noted that we are only referring to marijuana here, not hemp, and hemp business are starting up all over the US because of the looser restrictions placed upon them, legal status, and applications in many different sectors outside of recreational and medical spaces. 

Schedule 3

• Accepted medicinal use
• Lower probability of abuse

SOURCE: https://www.dea.gov/drug-information/csa