Moving cannabis to Schedule III under the Controlled Substances Act (CSA) is a significant proposed change in federal drug policy in the United States

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Here’s what it entails:

Under the CSA, marijuana is currently classified as a Schedule I substance, indicating a high potential for abuse and no accepted medical use, according to the DEA. However, most US states have legalized marijuana for medical or recreational use. 

Based on a scientific and medical evaluation, the Department of Health and Human Services recommended that marijuana be moved to Schedule III. In May 2024, the DEA issued a proposed rule to transfer marijuana to Schedule III. Substances in Schedule III, such as Tylenol with codeine or ketamine, have less potential for abuse and an accepted medical use. 

Potential impacts of rescheduling may include less severe legal penalties, eased research, and potential tax benefits for cannabis businesses. Rescheduling would not equate to full federal legalization without FDA approval. Inconsistencies between state and federal policies could continue. 

As part of the administrative process, the DEA is currently reviewing public comments and holding hearings, with the final outcome depending on the DEA’s final rule and actions by Congress or the states. 

Key points about cannabis as a Schedule III substance

• Current status: Marijuana is currently a Schedule I substance, which means it’s considered to have no accepted medical use and a high potential for abuse.
• Proposed rescheduling: Moving to Schedule III would reclassify marijuana as a substance with a moderate to low potential for dependence, acknowledging its accepted medical use according to the HHS evaluation.
• Potential impacts if rescheduled: Rescheduling could lead to less severe federal penalties, easier research, potential for more cannabis-based medications, tax benefits for businesses by allowing deduction of expenses, and improved access to banking for cannabis businesses. However, it would not legalize recreational use nationwide, and possession or distribution would still be illegal under federal law.
• Process and timeline: The DEA is reviewing the proposal through a formal rulemaking procedure, but there is no specific timeline for a final decision.
• Important considerations: Rescheduling alone will not make medical marijuana legal or legalize recreational marijuana nationwide. 

What to keep in mind

• The rescheduling process is ongoing, and marijuana remains a Schedule I substance at the federal level for now.
• Even with rescheduling, federal law would still classify marijuana as a controlled substance, and it would not automatically override state laws.
• Further legislative action may be required for broader cannabis reform.