Cannabis was rescheduled to Schedule 3 on December 18th 2025 by Donald Trump – Even though an executive order was issued, it did not give him the right to fully enact the rescheduling without Congress. Rescheduling would allow for legalized research of cannabis for medical studies conducted by pharmaceutical companies and universities in the United States. The Trump administration could use the Controlled Substance Act’s Section 811 to bypass the process of having the approval of Congress.
Rescheduling is a complex problem as it will require a change to Federal policies and laws that have for decades shaped the current state of this country. The United States led the way in the war on Cannabis as it was seen as a drug that caused many of society’s troubles. Harry Anslinger, who was at one time the commissioner of the Federal Bureau of Narcotics, spearheaded the war on Cannabis. Anslinger and 3 other delegates signed at the League of Nations the Geneva Limitation Convention of 1931. This placed limits on the production and distribution of drugs such as heroin, cocaine, and morphine. At one time Marijuana was taxed by the Federal Government (Marijuana Tax Act of 1937).
Anslinger sought to add Marijuana to the list of drugs under the Convention of 1931. As of 1937 41 states had already outlawed cannabis. Anslinger also mirrored the thought that it was a serious risk to the country and the youth. This thought is still echoed today amongst those politicians who are against federal legalization of cannabis. As of 2025 most of the country seemed to be in favor of the legalization of cannabis in some form. This was a counter point to voting in states that were on the verge of having a legal recreational market.
Several states have seen push back from voters by voting against having recreational access. Florida, North and South Dakota both recently rejected passing laws allowing the sales of cannabis or expanding the current market. Florida focused on limiting the expansion by limiting the amount of new businesses being allowed to operate in the state. In 2023 the Department of Health and Human Services recommended that cannabis be rescheduled to Schedule III. The DEA was against this move and the Trump administration appointed two different directors to the DEA that were publicly against the legalization and rescheduling of cannabis.
Constant political and legal battles have made it difficult for the general public, law enforcement, states, and the federal government to see eye to eye. James M Cole who was the Deputy Attorney General of the U.S. Department of Justice in 2013, wrote a memo to all U.S. attorneys. This memo provided guidance on how to proceed in the enforcement of marijuana under the Controlled Substance ACT. (CSA). The memo highlighted that this was not legalization of marijuana. Cole reiterated several times that enforcement would still happen for suspected illicit sales and actions, the use of firearms during the sales, production, or cultivation of cannabis. Cole stated that even if a state had an effective way to enforce their own legal marijuana laws, the Federal government could still take enforcement action if they feel an operation became too large or they suspect it has a connection to illegal activities. The Cole Memo can be found here as a PDF https://www.justice.gov/iso/opa/resources/3052013829132756857467.pdf
The 2018 Farm Bill or Public Law 115-334 12/20/2018 is the bill that many hemp producers operated under until the recent rescheduling. Many hemp and cannabis producers sold products under the Farm Bill as those products contained under the .03 required by law to be considered legal hemp. This opened the market to CBD and its derivatives being sold to the general public. CBD was more readily accepted due to it not being psychoactive. CBD was used to treat pain, anxiety, sleeplessness, and even for pets. What is commonly known as “Weed” is the psychoactive cousin of the hemp plant, Cannabis Sativa also known as hemp.
Cannabis Sativa contains levels of THC above the.03% in its finished state. When you purchase legal cannabis from a licensed dispensary there are two numbers that most people pay attention to. First is the amount of THC in a product, and second is the amount of the product. Most legal cannabis contains over the legal THC limit for hemp except for cannabis labeled as “THCA.” Simply this cannabis contains under the legal limit of THC to be classified as hemp but contains high levels of THCA which is the precursor to usable THC. This loophole in the Farm Bill caused states to start taking action against the sale of “Hemp derived THC or Delta-9” products.
This has not stopped pharmaceutical companies from importing and studying marijuana to make products. The Federal Register from the DEA lists companies that apply for variances to the scheduling to be able to import the raw material. Companies and researchers can apply for the exemption and perform certain actions under a limited scope. This does not give them the ability to cultivate marijuana, but gives them a foot up when cannabis is rescheduled. Anyone can sign up for the mailing list through email when the DEA takes action or a company, person, or organization applies for an exemption. This information alone is not enough to assume that every company that receives an exemption is in the business of producing products for recreational or medical purposes. Many may want to understand how the body reacts to cannabis and if it is a valid medical solution for patients.
Executive Order 14370 signed December 18th, 2025, called for the rescheduling of marijuana from Schedule I to Schedule III so it could be researched further. “Chronic pain affects nearly 1 in 4 United States adults and more than 1 in 3 United States seniors, and 6 in 10 people who use medical marijuana report doing so to manage pain.” This executive order did not change any laws immediately, but allows the government to move towards providing greater legal access to marijuana and the ability to research it. With research comes better acceptance and understanding. It has been proven throughout history that people regularly fear what they do not understand.
With rescheduling happening what does that mean for the hemp and THCA market? Right now there are increasingly valid points about how hemp and its derivatives should be legal in some form or fashion. Hemp at one point was a crop grown freely in the US. The last legal hemp grow in the US ended 1975. Hemp in the US did not recently become legal to grow and manufacture products made from hemp until 2014. Large scale production of hemp started around 2019 with Colorado, Kentucky, and Oregon being some of the largest producers of hemp. Other states started pilot programs with fewer licenses available. Information on the actual amount of hemp farms and usable hemp produced varies as information on grown hemp is not widely available.
For centuries, industrial hemp (plant species Cannabis sativa) has been a source of fiber and oilseed used worldwide to produce a variety of industrial and consumer products. Currently, more than 30 nations grow industrial hemp as an agricultural commodity, which is sold on the world market. In the United States, however, production is strictly controlled under existing drug enforcement laws. Currently there is no large-scale commercial production in the United States, and the U.S. market depends on imports. Hemp as an Agricultural Commodity. (2026, January 26). https://www.congress.gov/crs-product/RL32725
Across the country you can find CBD products on the shelves of grocery stores, to gas station counters. CBD has been traditionally used as a holistic alternative to traditional medicine. None of the products being sold at those places have approval from the Food and Drug Administration. According to the Mayo Clinic, “Currently, the only product approved by the Food and Drug Administration is a prescription oil called Epidiolex. It’s approved to treat two types of epilepsy. Aside from Epidiolex, state laws on the use vary.“
A quick search of “hemp derived beverages” in Google popped up with Total Wines and More’s “Guide to THC-Infused Beverages,” as the top result. (https://www.totalwine.com/discover/learn/thc-infused-beverages) It is astounding to see a place that primarily sells alcohol be the number one result when searching for THC beverages. On the other hand it does make some sense in that THC is seen as an intoxicant by most people. No different if you are drunk or high, you are impaired. The guide listed above does just the bare minimum to inform the customer about the hemp derived beverages. It is up to the customer to dig deeper. Total Wines assures customers what they are doing is legal as they are following the Farm Bill 2018. As of 1/26/26 their website still list hemp products even with the rescheduling of cannabis to Schedule 3.
This may hint to them not being affected by the rescheduling of cannabis as many people in the cannabis and hemp industry fear a mass closure of legal hemp businesses. The federal government and local departments have started enforcement of hemp derived products. Delta 9 and Delta 8 products are the main products that are used by people consuming hemp THC products. It is nice to see the wide availability of the products in stores. This can lead to confusion as well. When cannabis started to see mainstream legalization, people are only “supposed” to buy cannabis in a licensed dispensary. Most dispensaries are set up where you go in and place your order with a budtender or through a kiosk. You get called to the counter you pay for your product and off you go. Sight unseen. No cannabis was seen at all during this interaction. Now reference above about Total Wine and More. Both are items containing THC. Both claim to be intoxicants. One you can go pick up off the shelf along with your favorite alcoholic beverage. The other you have to go to a vault to buy an item that may or may not be what you ordered. (Most of the time it is.)
As we march forward in 2026 it will be exciting to see how the landscape of the legal cannabis market continues. The Gray Market is still thriving just in different forms. They still have plenty of open air markets along with seshes. Many in the Gray Market contribute in their communities. We have personally met many that work “legal” jobs to keep the lights on while they run caregiver grows to meet the ever growing list of people that look to find relief from pain. That is not to say it is 100% safe selling in the Grey Market. Some local municipalities turn a “squinted eye” to these markets as long as these events don’t cause any problems for the area. In these events you can find many of the same products in the dispensaries at tables and booths. The biggest difference is you may have a chance to talk to the grower or producer of the product to ask questions about them. This affords the client a chance to find a strain or product that works for them or will meet their needs.
