Yesterday, the U.S. Department of Justice (DOJ) ordered the rescheduling of medical cannabis products under the Controlled Substances Act from Schedule I to the less-restrictive Schedule III—while also setting the stage for a hearing to consider broader rescheduling.Why It’s Relevant
While there is still debate about the mental health benefits—if any—of cannabis products, placing cannabis in Schedule I has hindered the ability to conduct the clinical research that could provide more definitive answers. Schedule III substances—which have accepted medical uses but moderate potential for abuse and dependence—face fewer regulatory hurdles. (There are no medical indications for cannabis itself, but a handful of cannabis-derived products are approved to treat seizures or chemotherapy-related nausea.)
By the Numbers
- Effective now, FDA-approved cannabis-containing products as well as products regulated by a state medical cannabis license fall under Schedule III.
- The scheduling change does not legalize marijuana at the Federal level, nor does it change existing state laws related to medical/recreational cannabis legalization.
- On June 29, the DOJ will initiate an expedited administrative hearing process to consider moving cannabis as a whole to Schedule III.
The Other Side
In addition to the research implications, the rescheduling of medical cannabis provides financial benefits to cannabis companies. For example, they can now deduct expenses like rent and payroll on their taxes. It remains to be seen whether business or research will benefit more.
Takeaway Message
In a press release, DOJ noted that “these actions provide immediate and long-term clarity to researchers, patients, and providers alike while still maintaining strict federal controls against illicit drug trafficking.”
Related Information
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