DEA Rescheduling Announcement Could Be Imminent
April 30, 2024The Drug Enforcement Agency (DEA) could issue an announcement on the rescheduling of cannabis from a Schedule I drug as soon as this week, according to comments from opposition group Smart Approaches to Marijuana (SAM). SAM president Kevin Sabet said on the group’s podcast that pro-reform Democratic senators have been saying the move could come in the next few days.
Last September, the Department of Health and Human Services officially recommended that cannabis be reclassified as a Schedule III drug in a letter to the DEA. The result of a scientific review ordered by the president, the letter suggested that DEA move cannabis from its current category, where it is officially deemed to have high abuse potential and no medical value, to the less restrictive Schedule III. DEA, which has the final authority to make the change, has been conducting its own review over the past several months.
Most significantly for the cannabis industry, moving to Schedule III would obviate the much-maligned IRS 280E rule that prevents cannabis businesses from claiming standard federal tax deductions, because that rule only applies to Schedule I and II drugs. It would also considerably loosen rules around researching the plant. —Daniel Marsteller
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