When the Trump administration signed an executive order directing the reclassification of cannabis from Schedule I to Schedule III under the Controlled Substances Act, it marked one of the most consequential federal cannabis policy shifts in decades. For the first time, the U.S. government formally acknowledged what patients, clinicians, and state medical programs have asserted for years: cannabis has accepted medical value.

For many across the industry, the decision represents long-delayed common sense.

“Trump took the common sense approach and did what others promised — rescheduled cannabis as an accepted medicine,” said Michael Sassano, Founder of SOMAÍ. “Long awaited, this sends a message around the globe that medical cannabis should be available to help people and not providing access is simply bad political policy.”

At the center of that message is a simple truth echoed throughout the cannabis ecosystem: patients matter most. If cannabis is treated as medicine, then the systems governing it — from research and regulation to access and affordability — must evolve accordingly.

Yet as markets respond and headlines celebrate, a more complex conversation is unfolding beneath the surface.

A Long-Awaited Shift for Research, Patients, and Policy

For patient advocates and international operators, rescheduling signals more than regulatory movement — it reflects alignment with science.

“This is a visionary and long-awaited step forward,” said Sasho Stefanoski, CEO of Phcann International, adding that rescheduling brings U.S. federal policy closer to scientific understanding, unlocks new pathways for medical research, and holds real promise for improving the lives of millions of patients and families.

Stefanoski also emphasized the global implications of the decision. “This milestone signals renewed momentum for the international medical cannabis industry,” he said. “We are proud to witness this historic moment.”

For many, Schedule III represents the possibility of deeper clinical study, improved physician engagement, and a reframing of cannabis as healthcare rather than contraband.

Operators, 280E, and the Business Reality

For operators, the most immediate impact of rescheduling is financial — particularly the potential elimination of IRS code 280E, which has long prevented cannabis businesses from deducting standard operating expenses.

“The most immediate impact is that cannabis businesses can finally be treated like normal businesses, from taxes to access, and that alone is huge,” said Elad Kohen, CEO of The Flowery. “But just as important is what this means for research. This plant is medicine, and there are still so many inner qualities we need to understand.”

Kohen pointed to the historical absurdity of cannabis being classified alongside heroin and fentanyl for more than half a century. “No president acted to correct this wrong until now,” he said. “This administration was willing to take decisive action, and that matters. Action speaks louder than words.”

Founded in 2018, The Flowery operates 22 retail locations across Florida and New York with statewide delivery in both markets. Recently ranked #86 on the 2025 Inc. 5000 Fastest Growing Private Companies in America, the company views rescheduling as a turning point not just for balance sheets, but for legitimacy.

“With more than 50 million Americans consuming cannabis each year, and the great majority supporting medical research and uses, this decision simply reflects reality,” Kohen added. “It positions the U.S. as a true global leader in cannabis.”

Independent Operators and Medical Market Limitations

For New York–based independent operators, rescheduling brings optimism — and caution.

“Rescheduling is a critical step toward fully integrating cannabis into the mainstream economy — one that most Americans already recognize as legitimate,” said Nicolas Guarino, Co-Founder and CEO of Jaunty and Co-Founder of the Empire Cannabis Manufacturers Alliance.

Guarino underscored how deeply 280E has shaped survival in regulated markets. “Section 280E has been one of the greatest burdens on operators across the supply chain,” he said. “Rescheduling would allow cannabis businesses to be taxed like any other legal industry, freeing up billions of dollars that can be reinvested into operations, innovation, and long-term growth.”

However, Guarino noted that the benefits may not be evenly distributed.

“The most immediate impact would be felt in medical markets,” he said. “Adult-use markets in 24 states and D.C. would still face significant federal limitations that prevent the industry from reaching its full potential.”

For Guarino, rescheduling is meaningful — but incomplete — reform. “We’re hopeful this sets a clear precedent,” he said, pointing to the need for SAFE Banking, improved logistics access, capital availability, and ultimately federal legalization.

Not everyone sees rescheduling as progress.

From the perspective of longtime criminal defense and cannabis attorney Joseph A. Bondy, Schedule III may actually entrench federal control rather than dismantle it.

“Rescheduling cannabis to Schedule III doesn’t legalize the industry — it criminalizes it anew,” Bondy cautioned. “Every cannabis operator in the country would remain illegal under federal law, because Schedule III substances require DEA registration, FDA approval, and prescriptions based on bona fide medical use. Not a single botanical cannabis product has ever been FDA-approved.”

Bondy warned that the industry’s fixation on 280E relief obscures deeper structural risks. “This is not true reform,” he said. “It pharmaceuticalizes cannabis, sidelines existing operators, and creates the illusion of progress while preserving federal control under international drug treaty obligations.”

In this framing, Schedule III is not the end of prohibition — it is a reconfiguration of it.

Capital, Commerce, and Who Benefits First

Others argue that rescheduling is a necessary step, even if imperfect.

“If you ask most major industry players what the biggest regulatory hurdle is, it’s not federal illegality — it’s 280E,” said David N. Feldman, Managing Partner at Feldman Legal Advisors. “With rescheduling, this would be eliminated, immediately improving profitability for plant-touching companies.”

Feldman noted that Schedule III could unlock long-blocked pathways: federally regulated medical cannabis markets, import-export frameworks, federal trademarks, small business loans, and stock exchange listings.

“Over 50 countries have already done this,” he said. “We have failed to achieve it until now.”

Still, concerns remain about equity.

“As much as this could make the industry operate more freely — access to capital, potential interstate commerce, global exportation — it does nothing to free cannabis prisoners,” said Justin Johnson, Founder of BudsFeed, Chill Steel Pipes, and Dypsensr. “It will primarily benefit companies already backed by big money and potentially put the pharmaceutical industry in a position to dictate the future of the plant.”

Johnson added that reduced tax burdens could mean increased marketing spend, wholesale growth, and more flexible dispensary purchasing — but that prohibition’s human cost remains unaddressed.

What Comes Next

Rescheduling is not descheduling. It does not erase criminal records, free incarcerated individuals, or guarantee equitable access. It does, however, signal a fundamental shift in how cannabis is discussed at the federal level — from menace to medicine.

Whether this moment becomes a bridge to comprehensive reform or a bottleneck that consolidates power will depend on what follows: FDA pathways, research access, regulatory decisions, and whether patient needs remain central rather than collateral.

For now, the industry stands at a crossroads — buoyed by long-denied recognition, wary of who gets left behind, and acutely aware that acknowledgment is not the same as justice.

What matters most remains unchanged: patients — and the responsibility to build systems that serve them, not just markets that capitalize on them.