Today, Acting Attorney General Todd Blanche issued an Order confirming the rescheduling of select cannabis products from Schedule I to Schedule III, effective April 22, 2026. The 33-page Order raises substantial legal and regulatory questions, many of which remain unresolved. While FDA-approved cannabis products and those sold pursuant to state-issued medical marijuana licenses are included in the rescheduling, additional hearings are expected to address the treatment of non-licensed cannabis products.
The Order also signals the federal government’s position that state-licensed medical marijuana businesses are no longer subject to Internal Revenue Code Section 280E and establishes a pathway for retroactive tax relief, a solution that Greenspoon Marder has long advocated for on behalf of its clients.
Taken together, rescheduling reflects a meaningful shift at the federal level, but its practical impact on the cannabis industry will depend on future agency guidance, enforcement priorities, and regulatory implementation. Questions surrounding taxation, compliance, market structure, and federal‑state interaction will be critical in determining how this change ultimately affects licensed operators, investors, and ancillary businesses.
For more than a decade, Greenspoon Marder has helped cannabis clients navigate evolving policy and regulatory uncertainty. As the implications of this Order continue to develop, our multidisciplinary cannabis team remains focused on advising clients as they assess risk, evaluate opportunity, and plan strategically for what comes next.