UPDATE: President Donald Trump has just signed an executive order reclassifying marijuana from a Schedule I drug to a Schedule III drug, a groundbreaking shift that could transform the cannabis landscape across the United States, particularly in Michigan. This pivotal change, announced on October 5, 2023, signifies a major softening of federal policy towards cannabis, aligning it with other substances such as painkillers like Tylenol with codeine.
This reclassification could open the floodgates for medical research, making it significantly easier for researchers to explore the benefits and potential risks associated with marijuana. “This classification order will make it far easier to conduct marijuana-related medical research,” Trump stated during the signing ceremony in the Oval Office.
Researchers like Hillary Marusak, an associate professor at Wayne State University School of Medicine, are optimistic about the implications. “It’s actually a really exciting treatment target for things like anxiety and post-traumatic stress disorder and pediatric epilepsy,” she noted, underscoring the urgency of this shift for advancing scientific understanding.
The impact on Michigan’s cannabis industry is immediate. At New Standard Cannabis, manager Natalia Cardenas highlights the personal and community benefits of marijuana, stating, “I frequently sell products to customers dealing with physical ailments or issues with sleep.” She anticipates that more research will lead to enhanced products that can help relieve chronic conditions.
However, experts caution that while the reclassification is a milestone, it does not automatically resolve existing challenges. Marusak pointed out that federal funding for research remains crucial. “At first glance, it seems like a real win for cannabis science and research,” she said, “but I feel like the gesture changes little by way of research without more federal support.”
One of the most significant potential benefits of rescheduling involves changes to the IRS tax code, specifically Section 280-E, which has historically restricted business deductions for cannabis companies. Nick Hannawa, chief legal counsel at Puff Cannabis Company, explained, “We can’t write off anything other than the cost of goods. This change could save millions for companies that can now operate like any other business in the country.”
Despite the optimism, challenges remain. The executive order does not equate to federal legalization, which means that consumers still cannot use credit cards at dispensaries. Ross Sloan, senior vice president for cannabis banking at Dart Bank, warns that while the reclassification will eventually attract new investments, immediate changes won’t happen overnight. “The compliance costs of banking cannabis are high, and that’s kept a lot of banks out of it,” he said.
Interestingly, Trump’s move has not been universally welcomed within his own party. Several Republican lawmakers expressed their disapproval, with Senator Cynthia Lummis of Wyoming stating, “We have so many drug issues and so forth and we want to be protective of our young people.” Meanwhile, the cannabis industry is now turning its attention to the SAFER Banking Act, which could further facilitate banking relationships for cannabis businesses.
As the dust settles on this monumental decision, industry stakeholders and researchers alike are eager to see how this reclassification will reshape the future of cannabis in Michigan and beyond. The coming weeks will be crucial, as companies and researchers look to capitalize on what could be a transformative moment in cannabis history.
Stay tuned for more developments as this story unfolds.
