President Trump signed a pivotal Executive Order on December 18, 2025. This order directs federal agencies to accelerate cannabis rescheduling. The goal is to move marijuana from Schedule I to Schedule III. This marks a significant policy shift. Planet 13 Holdings, Inc. quickly urged action. They called for swift legislative and regulatory steps. The company issued commentary on December 22, 2025. Planet 13 sees this move as crucial. It offers a path to industry growth. This is major trending cannabis news.
Historic Rescheduling Order Issued
The Executive Order aims to finalize the process. It reclassifies cannabis under the Controlled Substances Act. Moving marijuana to Schedule III is a key step. This classification acknowledges its medical use. It also recognizes a lower potential for abuse. Schedule I drugs have no accepted medical use. They also have a high potential for abuse. Schedule III drugs have accepted medical uses. They have a lower abuse potential. This change officially recognizes cannabis’s medical value. It follows recommendations from HHS and the DOJ. Previous efforts had stalled. President Trump’s order aims to speed this up.
Planet 13’s Call for Swift Action
Planet 13 views this rescheduling as vital. It could significantly reduce tax burdens. This includes relief from IRS Code Section 280E. The company believes it will enable safe banking reforms. Improved access to financial services is also expected. Furthermore, it could support job creation. It will boost research efforts. Broader access to potential medical benefits is another key point. Planet 13 sees this as a first step. It leads to increased research. Regulatory clarity should also improve. This promises long-term value for investors. The company remains committed to growth. They navigate ongoing banking and tax challenges. This announcement offers positive development. It benefits job creation and industry growth. It also aids access to medical benefits.
Tax Relief and Financial Impact
One of the most significant effects is tax reform. For years, cannabis businesses faced IRS Code Section 280E. This section prohibits deductions for businesses trafficking Schedule I or II drugs. Consequently, cannabis companies paid extremely high effective tax rates. They essentially paid taxes on gross income. Moving to Schedule III removes this penalty. Businesses can now deduct ordinary expenses. This includes rent, payroll, and marketing. Such deductions significantly improve profitability. It offers much-needed financial relief. This could stabilize an industry under pressure. More operators may survive and reinvest. This change is a major benefit for the cannabis sector.
Boosting Research and Banking Access
The rescheduling order removes many research barriers. This allows for more comprehensive medical studies. Universities and companies can conduct federally sanctioned trials. These studies can explore therapeutic uses. They can help set dosage standards. This positions American institutions for leading research. Moving to Schedule III also impacts banking. It does not immediately fix all issues. However, it could lay a foundation for safe banking reforms. Banks may feel more confident serving the industry. This could improve access to loans and credit. Expanded insurance options might also emerge. The order also directs focus on CBD. It calls for clarity in hemp-derived cannabinoid product regulations.
Historical Context and Limitations
This rescheduling process began years ago. The Biden administration initiated a review in 2022. HHS recommended rescheduling in 2023. The DOJ proposed a rule in 2024. However, the process faced delays. President Trump’s executive action aims to overcome these. While a major step, it is not full federal legalization. Cannabis remains a controlled substance federally. State-legal cannabis programs are not overridden. Law enforcement practices on arrests may not change immediately. Banking reform still requires congressional action. The SAFE Banking Act remains a separate legislative effort. The DEA must still finalize the rulemaking process. This means full implementation will take time.
Industry Looking Ahead
The cannabis industry reacted positively. Many view rescheduling as normalization. It acknowledges the plant’s medical value. It reduces stigma surrounding its use. This news is a key piece of current cannabis news. It opens doors for greater investment. Industry leaders anticipate positive changes. Planet 13’s call for swift action highlights this. They emphasize the need to capitalize on these reforms. This move signifies a turning point. It moves cannabis policy toward reality. Further federal reform is still needed. However, this is a significant milestone. It reshapes the landscape for cannabis businesses. The industry is watching closely. It prepares for a new era.
