Cannabis will finally be reclassified as a schedule III drug in the US in what is being widely regarded as the most significant shift in federal drug policy in 55 years.
President Donald Trump ended months of speculation overnight by removing cannabis from the most restrictive category under its Controlled Substances Act.
Speaking at the Oval Office, he said: “I’m pleased to announce that I will be signing an Executive Order to reschedule marijuana from a Schedule I to a Schedule III controlled substance with legitimate medical uses.
“This reclassification order will make it far easier to conduct marijuana-related medical research, allowing us to study benefits, potential dangers and future treatments.”
He added. “It’s going to have a tremendously positive impact.”
The move, which had been flagged by President Joe Biden as early as 2022 when he ordered a review into the reclassification of cannabis, will open up research and ease some financial and banking restraints which have hamstrung companies and the wider industry.
It will also trigger a pilot program that reimburses Medicare patients in the US for products containing CBD.
While the move does not federally legalise cannabis, commentators said it will send a signal to global markets – including Australia – that the risks posed by cannabis are small and that its medical benefits, and potential, are legitimate.
Little Green Pharma chief executive Paul Long described it as a “global landmark policy moment” that acknowledges the legitimate medical use of cannabis and “removes long-standing regulatory obstacles to research and clinical development”.
“This shift will significantly improve the global evidence base for cannabis-derived therapies,” he said. “It will, I believe, have positive spillover effects for medicinal cannabis companies in the larger medicinal-driven markets like Australia and Europe by accelerating research, attracting investment, and supporting integration into mainstream healthcare.”
Curaleaf International chief executive Juan Martinez heralded it as a “historic regulatory shift” and a “global validation moment for medical cannabis”.
“Schedule III marks the first time the US federal government has formally recognised cannabis as having accepted medical value,” he said. “This is not legalisation, but it is a historic regulatory shift.
“Moving cannabis out of Schedule I, reserved for substances deemed to have no medical use, and into Schedule III places it within the framework applied to regulated medicines used routinely in healthcare systems worldwide.”
Martinez added that federal recognition of the medical value of cannabis “reduces uncertainty for investors, insurers, banks, research institutions, and commercial partners”.
“By setting the precedent of legitimacy, more opportunities for long-term capital, and large-scale clinical research arise, and ultimately, [it] supports deeper integration of medical cannabis into regulated healthcare systems,” he said.
“Internationally, the implications are substantial. The United States remains a central reference point for global drug policy, including international institutions. A federal acknowledgement of medical use sends a powerful signal that will influence regulators well beyond US borders.
Policy shifts of this magnitude tend to accelerate alignment elsewhere. Schedule III is not simply a US policy adjustment, it is a global validation moment for medical cannabis.”
Although the order has been signed by President Trump, the reclassification will still need to go through the Drug Enforcement Administration’s (DEA) formal rule-making process.