Marijuana Rescheduling : A Move from Schedule 1 to Schedule 3—Pros and Cons

In August 2023, the Biden administration announced its intent to reschedule marijuana from a Schedule 1 to a Schedule 3 drug under the Controlled Substances Act (CSA). This move signaled a shift in the federal government’s stance on marijuana. This would be a more lenient approach to a substance that has been a point of controversy for decades. But what does this rescheduling mean for the future of marijuana in the United States? Will it lead to greater access and research, will it open the door to greater viability for cannabis businesses small and large or will it have unintended damaging consequences to the Marijuana industry as a whole? Today, we’ll explore the potential positives and negatives of this change.

What is Marijuana Rescheduling Really?

To understand the impact of marijuana rescheduling, it’s essential to know what the current classifications mean. The Controlled Substances Act (CSA) classifies drugs into five schedules (Schedule 1 to Schedule 5), based on their potential for abuse, medical use, and safety profile. Schedule 1 drugs are considered the most dangerous, with no accepted medical use and a high potential for abuse. Marijuana has been classified as a Schedule 1 drug for decades, alongside substances like heroin and LSD.

In contrast, Schedule 3 drugs are considered to have a moderate to low potential for abuse and have accepted medical uses. This classification includes substances like anabolic steroids and certain prescription medications, such as hydrocodone and ketamine.

The Positives of Rescheduling Marijuana to Schedule

1. Increased Access for Medical Use

One of the most immediate benefits of rescheduling marijuana to a Schedule 3 substance would be broader access for patients who rely on medical marijuana for treatment. Currently, the Schedule 1 classification hinders doctors and researchers from prescribing and studying marijuana in clinical settings. A Schedule 3 status would allow for marijuana to be prescribed by doctors with fewer restrictions and enable pharmacies to carry medical cannabis products.

Additionally, this rescheduling could expand the variety of delivery methods, including edibles, oils, and capsules, all of which would be more widely available for medical patients. This could greatly benefit individuals suffering from conditions like chronic pain, epilepsy, anxiety, or multiple sclerosis, for whom marijuana has shown promising therapeutic effects.

2. Boost for Research and Development

One of the biggest roadblocks to fully understanding the medical potential of marijuana has been its status as a Schedule 1 drug, which restricts research. In Schedule 3, marijuana could be studied more freely, allowing for expanded research into its therapeutic uses, efficacy, and safety. This could lead to new, evidence-based treatments and potentially unlock benefits for a wide range of health conditions.

Additionally, the pharmaceutical industry could begin to develop marijuana-based medications, which could lead to more standardized, reliable products and potentially reduce the risks associated with the unregulated cannabis market.

3. Decreased Legal Barriers for States and Businesses

While state-level legalization of marijuana has been steadily increasing, its Schedule 1 status continues to create significant challenges for businesses operating in the cannabis industry. Financial institutions, for example, are hesitant to work with marijuana companies due to federal regulations. Rescheduling marijuana to Schedule 3 would ease these financial barriers and allow cannabis businesses to access banking services and credit lines more easily, fostering a safer and more stable industry.

Furthermore, rescheduling would also help state governments as they navigate the complexities of marijuana policy and taxation. With fewer federal restrictions, states might be able to more easily regulate cannabis markets and generate new sources of tax revenue.

4. Reduction in Federal Penalties and Stigma

Currently, people caught with marijuana in certain states or at the federal level face harsh penalties, despite its legal status in many parts of the country. Rescheduling marijuana could lead to a reduction or in some instances an elimination of criminal penalties for marijuana-related offenses, including lower sentences for possession or distribution of the drug. It would also be a step toward destigmatizing marijuana use, signaling a shift in societal attitudes toward cannabis as a medicinal or recreational substance.

Now The Negatives of Rescheduling Marijuana to Schedule 3

1. Continued Federal Prohibition of Recreational Use

Even with marijuana rescheduled to Schedule 3, it would still be illegal for recreational use at the federal level. Rescheduling would only apply to medical marijuana use and wouldn’t necessarily pave the way for full legalization. This means that while marijuana could be more easily prescribed for medical purposes, the federal government could still restrict its recreational use, leading to continued confusion and inconsistency across state lines.

Additionally federal prohibition would continue to create a divide between states that have legalized recreational marijuana and those that have not. Individuals traveling between states with different cannabis laws could still face legal repercussions, and interstate commerce in marijuana would remain illegal.

2. Business growth will still be stymied in some ways. 

The most prevalent is that way purchases of cannabis are paid for in states where cannabis is legal. Contrary to popular belief, Credit and Debit card payments will still not be allowed. Required business insurance will still be difficult to acquire and be costly. Be sure to work with professionals that can help you navigate the hurdles that will undoubtedly crop up.

Why wont credit and debit cards be acceptable forms of payment? Until the Federal government makes cannabis federally legal, the card brands, Visa & Mastercard, who are responsible for making this possible, simply will not allow it. They have stated, repeatedly, that they follow Federal laws. Do NOT fall victim to any solution offering credit and debit as a payment solution until then. Doing so, and getting caught violating the card brand rules, could cause your business a great deal of cost. There are very hefty fines associated with violations. Your business could be flagged for future acceptance as well.

3. Potential for Increased Commercialization

Rescheduling marijuana could open the floodgates for commercialization, which has its pros and cons. While it could lead to more high-quality products and safer consumption methods, there’s also the risk of large pharmaceutical companies and corporations taking over the marijuana industry. This could push out smaller, locally-owned businesses, and potentially lead to higher prices for consumers.

There is also the concern that an influx of commercial interests might prioritize profit over health, leading to marketing tactics that downplay the potential risks of marijuana or target vulnerable populations, such as teenagers or individuals with a history of addiction.

4. Regulation Challenges and Overregulation

With marijuana rescheduled to Schedule 3, the federal government would likely impose a more stringent regulatory framework in several ways that have not been considered by cannabis businesses or those that use it. While regulation is necessary to ensure consumer safety, there’s a fine line between creating standards for quality and overregulating the industry to the point that it stifles innovation and access. If regulations are too burdensome, it could drive up costs for producers and consumers or create barriers that prevent smaller businesses from entering the market.

In addition, the rapid pace of legalization at the state level could lead to a patchwork of laws that are hard for both consumers and businesses to navigate. Federal intervention might help create more consistency, but it also risks creating an overly complex and confusing legal landscape.

5. Ongoing Social and Racial Equity Issues

While rescheduling marijuana could reduce some legal penalties, it does not address the ongoing social justice and equity  issues related to marijuana use, particularly the disproportionate impact on communities of color. Despite marijuana legalization in many states, people of color and other minority groups are still arrested and incarcerated at higher rates for marijuana offenses than others. Simply stated, rescheduling marijuana without addressing these disparities could perpetuate existing injustices and fail to create meaningful change.

At the End of the Day, It’s  A Step Toward Progress, but Not Perfect

Rescheduling marijuana from Schedule 1 to Schedule 3 is a positive step forward in recognizing the therapeutic potential of cannabis and addressing the overcriminalization of marijuana use. It promises to enhance medical access, foster research, and reduce some of the legal and financial challenges faced by cannabis businesses. However, it does not solve all the problems associated with marijuana use, such as the federal prohibition of recreational use, commercialization concerns, and social justice issues.

As the federal government continues to refine its approach to marijuana, it will be important to balance regulation with freedom, ensuring that the benefits of rescheduling are felt by all Americans—while also addressing the negative consequences that may arise. In the end, this move is just one piece of a much larger puzzle in the evolving landscape of cannabis policy.