DEA Registration, 280E Relief, and State Rules Top Concerns After Rescheduling Order

A new seven‑page white paper from A.Y. Strauss partners Sahar Ayinehsazian and Jennifer Cabrera offers a detailed breakdown of the Trump administration’s April 23 order moving state‑legal medical cannabis into Schedule III. Titled “One Small Step for State Medical Cannabis Licensees, But One Giant Leap for the Cannabis Industry,” the document examines how the order reshapes tax exposure, banking access, payment processing, intellectual property, and the value of medical licenses. Ayinehsazian and Cabrera’s analysis of the rescheduling order also highlights the many unanswered questions that will determine how quickly operators can take advantage of the shift.

To better understand the implications for medical and dual‑use operators, I spoke with both attorneys about their key findings and the issues they believe will define the next phase of federal cannabis policy.

Key Takeaways For Operators

Ayinehsazian said the priority for medical operators is watching how the DEA handles the 60‑day registration window created by the order. She noted that the agency’s approach could determine whether registration becomes a practical requirement for accessing benefits tied to Schedule III status.

“One of the things that I would advise watching really closely is what happens with the DEA registration movement during the 60-day window,” she said. “That may end up becoming mandatory, may not. We still don’t know exactly how that’s going to work.”

For companies that hold both medical and adult‑use licenses, Ayinehsazian said the focus should be on operational separation. 

“For those who are medical and adult use, the takeaway would be to try and differentiate their operations to the extent possible,” she said. “To be able to glean all of the benefits that are possible now because of the order.”

Cabrera agreed that the registration question sits at the center of the industry’s next steps. 

“I think it’s deciding whether or not to file for DEA registration,” she said. “That’s the big one.”

A Surprising Structural Choice

Cabrera said one of the most unexpected elements of the order was the decision to allow medical operators to apply for DEA registration at all. She noted that the move carries implications far beyond tax relief.

“I’m surprised that they decided to go ahead with DEA registration,” she said. “It opens the door for interstate commerce. It opens the door for so much, and you could really see a future where adult use isn’t rescheduled.”

She added that federal agencies are still working to understand the order, and that the June 29 hearing will likely shape how far the administration intends to take the broader rescheduling discussion.

Retroactive 280E Relief Remains Uncertain

The order’s suggestion that Treasury consider some form of retrospective 280E relief has drawn significant attention, but Cabrera cautioned that expectations should remain low.

“Personally, I’m not very optimistic,” she said. “Are they going to issue refunds? I don’t see it. Are they going to issue massive credits? I don’t see it.”

Ayinehsazian said the federal government is unlikely to absorb a large financial loss on top of the revenue it will forgo going forward. She also warned that operators seeking relief could face heightened scrutiny if adult‑use cannabis remains in Schedule I.

State-Level Changes May Be Necessary

Both attorneys said dual‑use operators may need help from state regulators to take advantage of Schedule III benefits. Ayinehsazian noted that many states require medical and adult‑use licenses to be held in a single entity, which could prevent operators from separating activities in a way that satisfies federal expectations.

“It really is in the state’s best interest to allow operators to move as quickly as possible,” she said. “This gives them some kind of financial relief and keeps them from potentially going under.”

Cabrera added that many regulators may not act without legislative direction, leaving operators waiting for clarity.

A Shift In Market Value

Cabrera said one immediate effect is already visible. 

“Medical licenses are a lot more valuable than they were two weeks ago,” she said. 

In markets where medical programs had been overshadowed by adult use, the order has suddenly changed the economic landscape. 

“Their license is possibly much more valuable than an adult-use license,” explained Cabrera.

Looking Ahead

Ayinehsazian and Cabrera’s analysis of the rescheduling order illustrates how much is changing and how much remains unresolved. Their insights point to a period of rapid adjustment as operators evaluate DEA registration, prepare for new tax guidance, and consider restructuring to separate medical and adult‑use activities. The June 29 DEA hearing will be the next major milestone, and the industry will be watching closely for answers that could determine the pace and direction of federal cannabis reform.