On December 18, US President Donald Trump signed an executive order to lower the classification of marijuana from a Schedule 1 regulated substance down to Schedule 3 under the Controlled Substances Act.
This move means that marijuana, which had been in the same category as Schedule 1 drugs like heroin and LSD, will now be treated as a type of medication like ketamine or testosterone. Following this measure, the US Department of Justice will begin the procedure to reclassify cannabis to a lower grade.
During the signing ceremony at the White House, President Trump emphasized that “this reclassification order will make it far easier to conduct marijuana-related medical research, allowing us to study benefits, potential dangers and future treatments,” while stressing that this downward regulation is distinct from federal-level “legalization.”
Furthermore, he presented related research findings from the US Food and Drug Administration (FDA) showing that medical marijuana is scientifically helpful in treating anorexia, nausea, vomiting, and pain.
He also noted the strong demand from related agencies and organizations, stating, “I’ve never been inundated by so many people as I have about this particular reclassification.”
Jack Riley, former Deputy Administrator of the DEA (Drug Enforcement Administration), criticized the move as a “clear contradiction,” saying, “He’s blowing up boats in Latin America that he says are full of fentanyl and cocaine but on the other hand loosening the restrictions that will allow wider exposure to a first-level drug.”
CNN pointed out that this decision is “(the order) comes after an intensive lobbying campaign from the cannabis industry.”
Once the medicinal use of marijuana is permitted, related companies will benefit from tax incentives and will be able to expand their businesses through public listings. On December 12, when the possibility of marijuana deregulation was first raised, the price of active exchange-traded funds (ETFs) focused on the US cannabis industry ecosystem surged by 54%, recording the largest increase in history.
