Good morning.
Well, it’s about to be a busy few days for the cannabis industry. More on that below.
And tune in to This Week in Cannabis LIVE at noon where we’ll be breaking down what we know, what we don’t know, and what we think this means for our industry.
Let’s get to it.
-JB, JR, ZH
This newsletter is 762 words or about a 5-minute read.
💡What’s the big deal?
SCHEDULE III
Trump plans a rescheduling executive order
Driving the news: It’s (almost) the moment you’ve been waiting for.
President Trump is reportedly planning an executive order that would direct federal agencies to reclassify cannabis from the most restrictive Schedule I to the far less restrictive Schedule III.
While it’s far from full legalization or even decriminalization, it would be the biggest shift in federal drug policy since the Nixon Administration if it goes through.
What happened: The Washington Post and Axios reported late Thursday, citing multiple unnamed sources, that Trump is preparing an executive order that would direct relevant federal agencies to reschedule cannabis.
Trump reportedly discussed the plan with Speaker of the House Mike Johnson, who represents the more religious wing of the Republican Party and opposed the move, while flanked by cannabis industry execs.
Axios says he plans to sign early next year.
Back up: The Biden Administration directed federal agencies to reschedule cannabis, but planned hearings on the issue broke down earlier this year.
Why it matters: Reclassifying cannabis would get rid of the 280E tax and free up tons of cash for cannabis firms. It would also likely normalize the industry in profound ways, by allowing more banks to service cannabis firms. It could also stimulate further Congressional cannabis reform, and give cover for consumer giants to invest or partner with cannabis firms.
It’s not yet clear whether big domestic stock exchanges would allow cannabis companies that operate in the US to list, but we don’t imagine it would hurt. We’ll try and learn more in the coming weeks and days.
But Schedule III drugs are sold in pharmacies. Even though it’s far less restrictive than Schedule I, it still carries restrictions. It’s unclear what that means for state-regulated cannabis dispensaries, which would still be illegal under federal law, or whether the Trump Administration or Congress plans to tackle the issue.
And more: A number of trustworthy and connected sources reached out to me over the last week to say an announcement would be expected before the end of the year. I sent a tongue-in-cheek tweet to that effect — my bad for kicking the hornet’s nest — but I wouldn’t have sent that if I didn’t have credible information. Still, lesson learned.
What’s next: This is the realest rescheduling has ever been. But this is Trump we’re talking about. The White House cautioned news outlets that no final decision has been made, and Trump still could change his mind.
Still, cannabis stocks are going to boom over the next few days. $MSOS, an ETF tracking US cannabis names, was up 40% in after hours trading on Thursday.
Track executive orders here. The Federal Register, where the final rule will be filed, is here.
Read more: Here’s what I wrote in 2023 about what the effects of Schedule III may or may not be. We’ll know when we know, but that’s a good place to start.
-JB
⏩ Quick hits
Legalization rollback campaign in Maine can now gather signatures 📜
A campaign to recriminalize the commercialization of cannabis in Maine officially has the green light from state officials to start gathering signatures. The campaign must collect 67,682 verified signatures by Feb. 2, 2026.
THC inflation concerns hit national news 🔬
CBS News reported that the New England Narcotic Officers Enforcement Association called out the Massachusetts cannabis industry for allowing inflated THC rates. Massachusetts testing lab MCR Labs sued eight competitors at the beginning of the year for allegedly inflating their THC potency test results. Read more of our coverage here. Read more of our coverage on MCR Labs’ research from last year.
Kentucky medical market is finally ready to launch 🎈
Governor Andy Beshearsaid that the first medical dispensary in Kentucky will be ready to open for business this weekend. The state came during the governor's weekly address to the media. The first shop will reportedly be The Post Dispensary in Beaver Dam, KY.
📰 What we’re reading
CCC Members Address Secret Shopping, Inversion, Debarment, and Diversion | TalkingJointsMemo