Topline
The Department of Health and Human Services called for the Drug Enforcement Administration to reclassify marijuana as a lower-risk drug, according to Bloomberg, a potential change in line with the Biden Administration’s marijuana reform plans.
As a Schedule I drug, marijuana shares designations with drugs like heroin, LSD and MDMA.
Key Facts
The DEA received a letter from the HHS recommending that marijuana be reclassified from a Schedule I drug to a Schedule III drug, according to a Bloomberg report, which would define the substance as one with moderate to low abuse potential instead of high abuse potential.
Marijuana is a Schedule I drug, sharing designations with substances like heroin and ecstasy as drugs with no accepted medical use and a high potential for abuse, according to the DEA.
The DEA confirmed to Forbes Wednesday that it received the recommendation from the HHS but did not disclose the Schedule III classification reported by Bloomberg.
The HHS provided findings and a recommendation on marijuana scheduling, “pursuant to President Biden’s request for a review,” according to the DEA, which referred to President Joe Biden’s request last year to evaluate how marijuana is scheduled.
The DEA will have the final authority on the reschedule and “will now initiate its review,” according to an agency spokesperson.
Tangent
Cannabis stocks significantly jumped Wednesday following the news of a potential reschedule for marijuana. Share prices for companies such as Green Thumb Industries, Cresco Labs and Columbia Care rocketed up more than 10%.
Crucial Quote
“HHS has done the right thing and DEA should now quickly follow through on this important step to greatly reduce the harm caused by draconian marijuana laws,” Senate Majority Leader Chuck Schumer (D-N.Y.) said in a statement Wednesday.
Key Background
Last October, Biden called for the HHS and the attorney general to start the process of reviewing how marijuana is scheduled under federal law. The president noted in a statement that marijuana’s designation shares the same schedule as heroin and LSD and has a higher schedule than fentanyl and meth. The president’s request was part of a larger reform plan that included a proclamation pardoning federal convictions for marijuana possession offenses. A reschedule of marijuana would not lead to a widespread legalization of marijuana products, according to California-based law firm McGlinchey Stafford. However, the firm notes marijuana’s move to Schedule III would result in a “much lower” tax rate for cannabis businesses throughout the industry.
Further Reading
The Cannabis 42.0 (Forbes)
Your Guide To Cannabis Legalization By State (Forbes)