Overview
- The DOJ issued a final order that, on April 22, moved FDA‑approved marijuana drugs and marijuana produced under state medical licensing programs into Schedule III of the Controlled Substances Act.
- Investors and large multi‑state operators responded quickly, with major MSO stocks rallying as markets priced in clearer tax rules and stronger balance sheets for big firms.
- The rescheduling removes the legal basis for Internal Revenue Code section 280E to block ordinary business deductions for qualifying medical operators, and companies such as Trulieve have filed amended returns seeking refunds for 2019–2021.
- Federal agencies must still issue detailed guidance on taxes, banking, workplace testing, and firearms to make the change operational, so employers, banks, and patients face near‑term uncertainty about how rules will be applied.
- The order is being contested in the D.C. Circuit and the DEA will hold administrative hearings starting June 29 to consider broader rescheduling, making those legal proceedings the main near‑term drivers of whether the policy widens or is narrowed.