President Donald Trump just dropped a bombshell that could shake up America’s weed industry big time. On Monday, he said the White House is seriously looking at easing federal rules on marijuana, a change that might supercharge the $32 billion legal market. But hold on, he gave no clear timeline, shooting down last week’s buzz about a quick executive order to bump it to Schedule 3. What’s next for pot policy under Trump?
Trump’s words came out strong during a recent chat, confirming the administration is “very strongly” thinking about relaxing cannabis restrictions. This isn’t just talk; it points to a possible reclassification from Schedule 1, where it’s lumped with heavy hitters like heroin, to Schedule 3, alongside milder drugs like some painkillers.
This move could slash taxes for cannabis businesses and open doors to banking services they’ve long been shut out from. Right now, federal law treats marijuana as super dangerous with no medical value, blocking companies from normal financial tools.
Industry folks are buzzing with hope. For years, they’ve fought IRS rules that hit them with huge tax bills because they can’t deduct basic expenses. A Schedule 3 shift would fix that, letting firms keep more cash and grow faster.
But Trump played it cool on timing. He didn’t promise anything soon, which means that hot tip from last week about an order dropping Monday? It’s already a bust. Sources close to the matter say talks are ongoing, but no one’s rushing.
The Push for Change and Industry Impact
Cannabis leaders have been lobbying hard. At a big fundraiser earlier this year, execs from top companies pitched Trump directly on finishing what started under Biden but never got done. They want marijuana recognized for its medical perks, which could mean easier research and wider access.
Picture this: if reclassified, pot could get prescribed more like regular meds, maybe even covered by insurance in some cases. That’s huge for patients dealing with pain, anxiety, or other issues where cannabis helps.
Stocks tell the story of excitement. When rumors flew about an imminent order, shares in weed companies jumped. Investors see dollar signs in less red tape and more mainstream appeal.
Still, not everyone’s cheering without caution. Some worry about new federal oversight that might come with the change, like stricter rules on sales or testing.
- Tax relief: No more killer deductions ban under IRS code 280E.
- Banking boost: Firms could finally use credit cards and loans without fear.
- Medical wins: Easier paths for studies and prescriptions.
One short take: This isn’t full legalization, but it’s a step that could pave the way.
Background on Federal Weed Laws
Marijuana’s been stuck in Schedule 1 since the 1970s, a spot reserved for drugs seen as highly addictive with zero benefits. That clashes with reality today, where most states have legalized it for medical or recreational use.
Trump’s not the first to eye a fix. The previous administration kicked off a review, but it stalled. Now, with Trump back in charge, pressure’s mounting from voters and businesses alike. Polls show over 70% of Americans support some form of legalization, up from decades ago.
Why Schedule 3? It admits the drug has accepted medical uses and lower abuse risk. Think ketamine or certain steroids – regulated but not banned outright.
This fits Trump’s past nods to reform. During his first term, he signed a farm bill that legalized hemp, a cannabis cousin. Supporters say he’s pragmatic, seeing economic upside in a booming industry.
Challenges and What’s Ahead
Not everything’s smooth sailing. Critics argue an executive order might face legal pushback, since rescheduling usually goes through a formal process with the DEA and public input.
Industry watchers point out potential downsides too. Stricter FDA involvement could mean big pharma muscling in, squeezing out smaller players.
Plus, states with legal weed already deal with a patchwork of rules. Federal change wouldn’t erase those, but it could harmonize things and cut conflicts.
Looking forward, this could spark bigger moves, like full decriminalization. But Trump stressed any shift would come with “smart regulations” to keep things safe.
Experts say watch for signals from key advisors. If momentum builds, we might see action by early next year.
In a recent survey by Gallup in 2024, support for marijuana legalization hit a record high, showing public opinion’s shift.
Trump’s hint at cannabis reform isn’t just policy wonk stuff; it could reshape how millions access and use weed, boost jobs in a growing field, and even influence elections where pot’s a hot button. As details emerge, the industry holds its breath for real change that matches state progress with federal nods.