President Trump signed a new Executive Order on December 18, 2025. This order aims to speed up cannabis research. It directs the Attorney General to expedite rescheduling. Cannabis is moving from Schedule I to Schedule III. This is a major shift in federal policy. For years, Schedule I status blocked research. Schedule I drugs have high abuse potential. They also have no accepted medical use. Moving to Schedule III recognizes medical benefits. It acknowledges lower abuse potential. This change could enable new medical studies. It might also lead to FDA-approved treatments.
Schedule III: Potential Industry Wins
Rescheduling could bring significant business advantages. It may end the punitive IRS Code Section 280E. This code penalizes cannabis businesses. It prevents standard tax deductions. Schedule III status would allow normal business expenses. This offers substantial financial relief. It aligns federal tax policy with state markets. The move also aims to ease research barriers. This could attract new investment. It may encourage more clinical trials. Universities and research institutions may see streamlined pathways. Access to study materials could improve.
Hemp’s New Regulatory Reality
Meanwhile, the hemp industry faces a starkly different outlook. Recent congressional action has created major upheaval. A bill passed in November 2025 redefined hemp. This legislation significantly tightens federal rules. The 2018 Farm Bill defined hemp. It focused on a delta-9 THC limit of 0.3%. The new law uses a total THC standard. This includes THCA and other cannabinoids. It sets a strict limit of 0.4 milligrams per container. This change effectively bans many popular hemp products. Synthetic cannabinoids are also now excluded. These new rules take effect on November 12, 2026. Many see this as a federal ban on most consumable hemp. It closes a perceived ‘loophole’ in the Farm Bill. This legislation creates a confusing landscape.
Navigating Regulatory Whiplash
The cannabis rescheduling EO and the new hemp restrictions create a complex situation. This rapid regulatory shift is causing confusion. The EO directs the Attorney General to complete the rescheduling process. However, it does not change the November bill’s impact on hemp. Congress has the option to not align with administration updates. This creates significant regulatory whiplash. Several bills have been introduced. The American Hemp Protection Act of 2025 is one. It aims to repeal the restrictive hemp language. The HEMP Act of 2025 is another effort. These legislative events underscore the industry’s uncertainty.
Looking Ahead
These diverging regulatory events highlight ongoing trends in cannabis news. The path to rescheduling is still underway. The EO accelerates an existing rulemaking process. It does not immediately change cannabis’s legal status. For the hemp industry, the new restrictions loom. Companies must prepare for compliance. This is a critical time for businesses. These evolving events are closely watched. Clarity will be essential for future operations. The trend shows dynamic legislative and executive action. This news impacts many trending topics. The industry awaits further developments.
