Rescheduling or Descheduling Marijuana?

Hello, everyone! Welcome back to the RESTART blog. If you’re new here, my name is Shayda. I’m the Co-Founder of RESTART, and today we’re diving into the debate of the century in the cannabis world. Should marijuana be rescheduled or descheduled? Now, while we operate in the hemp industry, the federal scheduling of marijuana affects and impacts our industry, too, due to them both pertaining to cannabis. So read on to learn the differences between rescheduling and descheduling, and what some of the possible pros and cons of each outcome would have.

Last month, Bloomberg reported that they had obtained a letter from the Department of Health and Human Services, also referred to as HHS, recommending that the US Drug Enforcement agency, also referred to as the DEA, reclassify cannabis from schedule one of the controlled Substances act to schedule three. Now, the letter comes some ten months after President Biden called on the secretary of HHS and the attorney general to expeditiously review the scheduling of cannabis under federal law, and, if adopted, would represent the biggest change in federal cannabis policy in 40 years. Although industry watchers like myself are cautious with respect to any major policy changes, absent clear indication of imminent action, which is a lesson hard learned from the annual speculation around the Safe Banking act, the news is nevertheless is a welcome sign for an industry under tremendous pressure. Now, currently, as it stands, marijuana is a schedule one drug, making it federally illegal and viewed as having no medical value. But we all know the conversation has shifted a lot. So what are our options? First, let’s define our terms. Rescheduling is moving marijuana to a less restrictive schedule to acknowledge its medical uses. Descheduling is completely removing it from the Controlled Substances act, making it more akin to alcohol or tobacco.

Now, many argue for rescheduling marijuana. At a minimum, this would relieve cannabis companies from the IRS’s section 280, which restricts standard business tax deductions. It could also encourage banks to finally offer traditional services to cannabis companies like mine. And these are considerable advantages, but are they enough? Which is why people are actually pushing for descheduling. And if descheduling could be the smarter move, regulatory clarity. Descheduling would eliminate any federal barriers, paving the way for a comprehensive, state based regulatory framework. There’s also the full economic benefits. So without the federal restrictions, the cannabis industry can achieve its full economic potential, providing jobs and contributing to the GDP.

There’s also a social justice component. Descheduling can more effectively address past wrongs, including the expungement of criminal records related to marijuana offenses, and it encourages research. While rescheduling makes research easier, descheduling removes even more barriers, allowing for a broader scope of studies and international trade. Descheduling opens the doors for international markets, something rescheduling simply can’t effectively do. While rescheduling has its merits, descheduling offers a path that isn’t just about easing restrictions, it’s about reimagining how marijuana fits into our society, our economy, and our laws. So that’s the rundown on why descheduling can be a more impactful step than rescheduling. But if you have any questions or thoughts that you want to share, please drop them in the comments below. What do you think between rescheduling compared to descheduling? And remember, the more we know, the better decisions we can make as a society.

If you enjoyed this blog, make sure you share with a friend to keep them in the know of all cannabis news. Let us know what you think in the comments and we’ll see you for the next RESTART cannabis educational blog post!