Today’s development – April 23, 2026

• Medical Cannabis Rescheduled with Legalization Pathway:  DOJ announced this morning that medical cannabis products (those that are “subject to a state medical marijuana license”) and FDA approved products containing marijuana have been rescheduled to Schedule III.
• Mandatory DEA Registration for Federal Legalization:  DEA is establishing an expedited federal registration process for entities holding state medical marijuana licenses, allowing early applicants (those who apply within 60 days of publication – June 23, 2026) to continue operating under their state licenses while their federal registration is pending.  The rule directs DEA to process applications submitted during this limited window “within six months.”  DEA must grant applications “unless doing so would be inconsistent with the public interest under the 21 U.S.C. § 823 factors or with the requirements of the Single Convention.”  Those who obtain a DEA Registration will be operating legally under federal law with respect to their medical cannabis products and will have the ability to export their products internationally for medical and scientific purposes, pending DEA export permit approval.
• Adult Use Cannabis Remains Schedule I for now:  Adult use cannabis will remain Schedule I for now.  State-licensed adult-use operators without a state medical marijuana license receive essentially no benefit.  The order defines “state medical marijuana license” as “a license issued by a state entity (or by a District of Columbia entity or a federal territorial entity) authorizing the licensee to manufacture, distribute, and/or dispense marijuana or products that contain marijuana for medical purposes.”  Only marijuana that is either in an FDA-approved drug product or “subject to” such a medical license is rescheduled to Schedule III.
• The order is explicit that “any form of marijuana other than in an FDA-approved drug product or marijuana subject to a state medical marijuana license remains a schedule I controlled substance, and those who handle such material remain subject to the regulatory controls, and administrative, civil, and criminal sanctions, applicable to schedule I controlled substances set forth in the CSA and DEA regulations.”
• 280E & Medical Cannabis:  We anticipate that the IRS will acknowledge that medical cannabis operators can take ordinary business tax deductions, since the Rescheduling Order calls for medical cannabis to be listed on Schedule III.  Notably, the Order expressly declines to make any determination regarding federal tax liability, stating that “qualifying state licensees should consult with tax counsel regarding the applicability of Section 280E to their specific circumstances.”
• Upcoming Hearing for Rescheduling of Adult-Use Cannabis:  Based on the DOJ’s Press Release, beginning on June 29 (to conclude not later than July 15), there will be a new administrative hearing process to consider evidence supporting “broadening” marihuana rescheduling – seemingly to weigh also adding recreational marihuana products to Schedule III.  The rescheduling of medical cannabis is effective immediately.
• State cannabis licensing frameworks remain otherwise unchanged.
• Import and export permit requirements for marijuana products will remain in place, consistent with U.S. obligations under the Single Convention on Narcotic Drugs.  Once registered with DEA, state medical cannabis operators will be able to export internationally for medical and scientific purposes, subject to treaty and quota requirements.
• What’s next: prepare for lower effective tax rates, advocacy at the upcoming hearing, and more opportunities for international cannabis expansion.

Reach out to your Dentons contact to schedule a call to discuss the DEA Registration Process or next steps regarding 280E today.

Read the entire Order here.

https://www.dentons.com/en/insights/alerts/2026/april/23/doj-reschedules