Today’s development

• President Trump has issued an Executive Order (“EO”) directing that cannabis be rescheduled from Schedule I to Schedule III. The much-awaited Executive Order directs the Attorney General to “take all necessary steps to complete the rulemaking process related to rescheduling marijuana to Schedule III of the CSA in the most expeditious manner.”
• Cannabis will remain a controlled substance, but (1) its medical value has now been recognized, (2) barriers to research will diminish, and (3) it will no longer be exposed to the tax disadvantages of 280E. Our previous article, Rescheduling Misconceptions and Responses, explains the legal implications of rescheduling.
• State cannabis licensing frameworks remain unchanged (and got a positive nod in the EO!).
• The EO also directs (1) White House staff to work with Congress to “update the statutory definition final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products” ; and (2) HHS to “develop research methods and models, to utilize real world evidence and to improve access to hemp-derived CBD products.”
• While not mentioned in the EO, Trump and others at the EO signing ceremony at the White House discussed new opportunities for hemp: CMS, via CMMI, may cover certain hemp-derived cannabinoid therapies for seniors subject to forthcoming rules—creating a significant market opportunity.
• “Full-spectrum” was not defined, but based on the EO language appears to include hemp-derived products containing efficacious levels of THC and potentially meeting certain “CBD to THC ratio requirements. Access to these products, as well as revising “an upper limit on milligrams of THSC per serving” in “hemp-derived cannabinoid products,” are designated for consideration in “update[ing] the statutory definition of final hemp-derived cannabinoid products.”  The EO is unclear on timing for updating this statutory definition, but we expect prior to November 2026, which the federal definition of hemp is currently scheduled to change.
• What’s next: prepare for lower effective tax rates, capital infusion, and an opportunity for hemp to pivot towards healthcare and full spectrum products.

Let’s talk through what this means for you. Contact Eric Berlin or your Cannabis & Hemp team member to schedule a 20‑minute briefing on 280E relief, financing implications, and potential CMS/CMMI coverage pathways for hemp-derived therapies.