After two years of speculation, rumours, stock swings, broken promises, and political theatre, President Donald Trump officially signed an executive order (EO) to push cannabis rescheduling through on Thursday (December 18).
Amid a wave of excitement that the bureaucratic quagmire could finally be overcome, Trump made good on promises made earlier this week and signed an EO instructing federal agencies to move cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA).
Regardless of the underlying motivations, whether a move to claw back youth votes ahead of the midterms or a genuine philosophical position, Trump’s move will stand as one of the most significant drug reform initiatives in US history, set to have ramifications for cannabis across the globe for years to come.
The long-term implications for global drug reform are hard to predict, but the jubilation across the global cannabis industry is deserved. Tax relief for US companies is a major factor, one that has largely driven a spike in MSO and LP’s stock prices. Yet, the formal acknowledgement that cannabis has accepted medical use by the US government could transform the medical sector, will open the door for clinical research that the sector has been calling out for since its inception.
Stephen Murphy, CEO of Prohibition Partners, said that this represents a ‘historic pivot’ in US drug policy, sending a critical signal to regulators across the globe.
“It removes cannabis from the most restrictive category of the Controlled Substances Act and formally acknowledges its medical use under federal law.
“The deeper significance lies in the signal it sends to regulators, researchers, and the global medical community. Beyond tax relief, rescheduling cannabis to Schedule III signals a seismic shift in how the US federal government approaches cannabis research. For decades, researchers have faced bureaucratic dead ends, limited access to quality study material, and overwhelming restrictions tied to cannabis’s Schedule I status.
“Reclassification will lower these barriers, enabling clinical trials, longitudinal studies, and evidence-based standards of care. In effect, it opens the door for universities, hospitals, and pharmaceutical companies to treat cannabis as a legitimate therapeutic compound, potentially fast-tracking FDA-approved treatments and reshaping global perceptions of medical cannabis.”
What the executive order actually does
The executive order, titled ‘Increasing Medical Marijuana and Cannabidiol Research,’ is more narrowly focused than much of the speculation that preceded it, containing three primary directives rather than the sweeping reforms many had anticipated.
While this does not bypass existing legal procedures, the order specifies the AG must act ‘in accordance with Federal law,’ meaning the DEA’s formal rulemaking process remains in place, agencies are now directed to move ‘in the most expeditious manner’, meaning the static process should begin moving forward, and quickly.
The order also instructs the White House Deputy Chief of Staff for Legislative, Political, and Public Affairs to work with Congress on updating the statutory definition of hemp-derived cannabinoid products. This provision aims to ‘allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving Congress’s intent to restrict the sale of products that pose serious health risks.’
Furthermore, the directive includes consultation with executive agencies to develop a regulatory framework that would establish ‘guidance on an upper limit on milligrams of THC per serving with considerations on per container limits and CBD to THC ratio requirements’, effectively creating a tiered system that distinguishes between low-dose wellness products and higher-potency intoxicating products.
Finally, the order directs HHS, FDA, CMS, and NIH to develop research methods utilising ‘real-world evidence’ to improve access to hemp-derived cannabinoid products and inform standards of care.
The White House fact sheet accompanying the order emphasised the medical rationale, noting that more than 30,000 licensed healthcare practitioners across 43 jurisdictions are authorised to recommend medical marijuana to over six million registered patients for at least 15 medical conditions.
The FDA’s 2023 review found credible scientific support for cannabis use in treating pain, anorexia related to medical conditions, and chemotherapy-induced nausea and vomiting.
Notably absent from the executive order was any mention of the SAFER Banking Act, federal clemency provisions for cannabis convictions, or direct mandates for Medicare CBD coverage.
A $500 annual CBD reimbursement pilot for seniors over 65 is expected to begin next year, though this appears to be a separate administrative initiative rather than a component of the executive order itself.
During the signing ceremony, attended by health officials, physicians, researchers, and veterans advocates, the decision was framed as responding to overwhelming public support, citing polling data showing 82% of Americans favour rescheduling.
