FDA Recommends Reclassifying Marijuana Under Less Strict Federal Drug Laws

If approved by the DEA, the move could ease research restrictions and banking constraints, and alter tax implications for the cannabis industry.

The FDA has determined that marijuana is eligible for less strict classification under federal drug laws, fitting the criteria for rescheduling under the Controlled Substances Act.
President Biden directed his administration to review the federal prohibition of cannabis in 2022, leading to a recommendation for rescheduling marijuana from Schedule I to Schedule III.
The FDA review found that marijuana has a lower potential for abuse than other drugs in Schedule I and II, has a medical use currently accepted in the U.S., and carries a low or moderate risk of physical dependence.
The recommendation to reschedule cannabis must be approved by the U.S. Drug Enforcement Administration (DEA). A report from the Congressional Research Service suggests the DEA is likely to approve the recommendation.
Reclassifying marijuana to Schedule III would reduce restrictions on researching cannabis, ease constraints on banking services for the cannabis industry, and mean that an IRS rule denying tax deductions for most pot businesses would no longer apply.