Cannabis Rescheduling Leaves Key Gaps: What Industry Leaders Say Still Needs Fixing

Cannabis industry experts, stakeholders, and policy voices think that the U.S. Department of Justice’s move to reclassify state-licensed medical cannabis from Schedule I to Schedule III under the Controlled Substances Act legitimizes medical marijuana systems across the United States. However, some voiced concerns about being limited in leaving recreational cannabis out of the picture.

As Terry Mendez, CEO of SHF Holdings, Inc., doing business as Safe Harbor Financial (NASDAQ: SHFS), put it, the order is “a targeted action limited to medical cannabis and FDA-approved products,” not “a broad federal rescheduling.” Mendez referred to the opportunity and the limits that operators and investors are about to face.

Financial Impact and Section 280E Relief

The immediate impact of medical cannabis businesses is financial, with the removal of Section 280E tax restrictions for qualifying operators. Mendez said that 280E has been driving  “effective federal tax rates as high as 70 percent or more,” and that relief “should improve operator liquidity, financial transparency, and credit quality.”

Mendez believes the tax change would spread gradually into capital markets. With federal risk declining, he said, “more institutions are likely to explore cannabis banking.”

Industry Leadership: A Major Policy Shift

From operators, Boris Jordan, chairman and CEO of Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), called it “the biggest legislative change for cannabis in 55 years,” saying it signals “federal policy is beginning to catch up with science, public opinion, and economic realities.” He argued it will “accelerate research, expand patient access, help protect consumers from the illicit market,” and “address long-standing industry challenges such as punitive tax structures and capital constraints,” while noting medical tax relief begins immediately, and broader relief may follow.

Uneven Benefits Across Medical And Recreational Markets

However, the benefits are uneven according to several stakeholders, as recreational cannabis remains illegal under federal law, subject to current restrictions.

“The implications are uneven: medical operators may benefit…while non-medical businesses remain subject to existing Schedule I treatment,” Adam Stettner, CEO of FundCanna, said in a statement. He highlighted that many companies that have mixed or recreational exposure, “the expected tax and margin impact remains uncertain and likely unchanged.” 

Regulatory Framework And Long-Term Uncertainty

In the meantime, the policy change that includes DEA-aligned compliance and a more standardized environment translates to the formalization of a federal framework for medical cannabis.

“Broader transformation will take time, and likely some form of congressional action,” Stettner said. “Regulatory clarity will continue to emerge unevenly, particularly between medical and adult-use markets, and increased federal involvement may introduce new oversight layers tied to FDA and DEA requirements. Ultimately, this moment sets direction, not outcomes — raising the bar for how cannabis businesses operate, comply, and access capital in an increasingly fragmented market.”

Wellness And Hemp-Adjacent Industry Perspective

In the wellness and hemp-adjacent sector, Thomas Winstanley, EVP and GM of Edibles.com, framed the move as symbolic progress. He said it “marks a historic shift in federal policy” and “will be remembered as a decisive step toward expanding access to products that have long been misunderstood and stigmatized.” He added it reflects “continued momentum toward broader regulatory clarity,” while noting the distinction that it “remains distinct from hemp under current law,” even as the industry works toward “a durable, common-sense federal framework for hemp.”

Consumer Brand And Patient Access View

From the consumer brand side, Wendy Bronfein, co-founder of Curio Wellness, called the medical cannabis reclassification “a meaningful and long-overdue step,” saying it “reflects federal recognition of its accepted medical use, expands access to care for patients…[and] helps stabilize an industry that has faced prolonged uncertainty.”

Research And Compliance Implications

Sam Brill, CEO of Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH), focused on research and compliance, saying the policy move “has the potential to meaningfully reduce barriers to research” and moves policy “in the right direction,” while noting that “rescheduling is not legalization” and does not resolve structural industry issues.

Cultural And Social Impact Perspective

From culture-driven branding, Seth Sznapstajler, co-founder of Sluggers Hit, framed the policy change in human terms: “Today’s rescheduling movement is for the people who took the hits from cannabis prohibition, whether that was charges, lost jobs, or just the stigma that came with it.” He added, “We don’t forget where this started. We’re just going to keep building what comes next.”

Policy Advocacy And Structural Concerns

Policy advocates are more direct about what remains unresolved. Betty Aldworth, co-executive director of MAPS and chair of The Marijuana Policy Project, called rescheduling “a step in the right direction, not a solution,” arguing it “does not resolve the fundamental contradictions between federal and state law” or address issues like banking access, legal exposure, or social equity. “Progress that stops short…is not transformation,” she said. “It is a postponement.”

“What we are seeing now is a familiar pattern: momentum framed as reform, without the structural change required to make that reform meaningful in people’s lives,” Aldworth said in a statement. “Cannabis is no longer a fringe issue. It is a $38 billion, state-regulated sector operating across much of the country, with demonstrated public health, economic, and social impacts, including evidence suggesting reductions in youth use in legal states. Federal policy is not just lagging behind the evidence; it is actively undermining the reality on the ground.”

Call for Broader Federal Reform

Anthony Coniglio, CEO of NewLake Capital Partners, Inc. (OTCQX: NLCP), pointed to the need for further action, including broader rescheduling and banking legislation.

“That [medical cannabis reclassification] is meaningful progress because it begins to align federal policy with medical reality, state regulatory systems, and the operational framework under which compliant businesses have been operating for years,” Coniglio said. “We encourage federal policymakers to build on this momentum. Completing the broader rescheduling process, passing the CLIMB and SAFER Banking Acts, and advancing legislation that creates a durable national framework would help support capital formation, regulatory consistency, and responsible long-term growth across the industry.”