In a surprising development, former President Donald Trump has announced his support for rescheduling cannabis to Schedule III, a significant shift from its current Schedule I classification. This endorsement, which aligns with Vice President Kamala Harris’s stance, marks a historic moment in U.S. cannabis policy, with both major presidential candidates advocating for substantial cannabis reform.
The Impact of Rescheduling Cannabis
Currently classified as a Schedule I substance under the Controlled Substances Act, cannabis is deemed by the federal government to have a high potential for abuse and no accepted medical use. This classification has long been criticized for stifling medical research and creating numerous legal and financial challenges for the cannabis industry.
Rescheduling cannabis to Schedule III would recognize its medical uses and potentially reduce federal restrictions that complicate its legal status. This change could address some systemic issues within the industry, including tax burdens and banking complications. However, industry experts emphasize that rescheduling alone may not resolve all challenges.
Sundie Seefried, CEO of SHF Holdings, Inc., expressed cautious optimism about Trump’s announcement. “The announcement by former President Trump to support the rescheduling of cannabis to Schedule III is a welcome development. As he rightly pointed out, the current system of needless arrests and incarceration for small amounts of marijuana is harmful and unproductive,” Seefried said.
Nevertheless, Seefried noted that rescheduling alone may not solve the significant banking challenges facing the industry. “It’s important to note that rescheduling alone will not solve the significant banking challenges facing the cannabis industry,” she explained. “During Trump’s own administration, the Department of Justice under Attorney General Jeff Sessions rescinded the Cole memo, creating further uncertainty and obstacles for financial institutions looking to serve the legal cannabis market.”
Seefried emphasized that while rescheduling could alleviate some tax burdens, the federal illegality of cannabis still requires rigorous compliance with the Bank Secrecy Act (BSA). “Comprehensive federal legalization, coupled with clear regulatory guidance or reduced regulation, is ultimately what’s needed to create a stable and thriving banking environment for the cannabis sector,” she added.
Key Perspectives on the Policy Shift
Stu Zakim, Owner of Bridge Strategic Communications, expressed skepticism about Trump’s commitment to cannabis reform. “I think that man will say anything to get elected! The bigger question is whether he will follow through if, unfortunately, he does win,” Zakim remarked. He suggested that Trump’s support might be more influenced by personal connections, such as his relationship with Trulieve CEO Kim Rivers, rather than a genuine commitment to the issue.
Despite Zakim’s reservations, Trump’s support is seen as a landmark development by many in the cannabis industry. Anthony Coniglio, CEO and President of NewLake Capital Partners, Inc., highlighted the broader implications of Trump’s policy shift. “The recent shift in cannabis policy marks a historic moment for the U.S., as we now have two presidential candidates—Vice President Harris and former President Trump—supporting the removal of cannabis from its current Schedule I classification,” Coniglio said. “This is the first time in history that both major party candidates are on record in favor of cannabis reform.”
Coniglio commended the bipartisan support for cannabis reform, noting that “90% of Americans agree [that] medical cannabis should be legal in the U.S.” He expressed hope that comprehensive federal legalization would attract larger institutional investors and create a more stable financial environment for cannabis businesses. “We urge policymakers on both sides of the aisle to continue pushing for long-term solutions that will fully integrate the industry into the broader financial system,” he added.
Broader Context and Future Prospects
David Culver, SVP of Public Affairs at the U.S. Cannabis Council, welcomed Trump’s support, which aligns with broader efforts to reform cannabis policy at both federal and state levels. “Reclassifying cannabis to Schedule III would mark a historic shift away from the nation’s failed drug war,” Culver remarked. “Cannabis never belonged on Schedule I, and the drug’s low abuse potential and proven medical use warrant a Schedule III designation, if not outright descheduling.”
Culver highlighted the potential impact of these endorsements on both federal and state-level cannabis reform. “President Trump’s support could prove pivotal for meeting the 60% threshold required for Florida’s Amendment 3 to become law,” he said. “And his endorsement of [the SAFE Banking Act] provides a common-sense approach to bringing cannabis into the regulated banking system.”
As the 2024 election approaches, cannabis reform has emerged as a significant issue, with both major presidential candidates endorsing substantial changes to the current cannabis policy framework. This bipartisan support could herald a new era of cannabis reform, bringing greater legal clarity and financial stability to the industry.
As the political landscape continues to evolve, industry stakeholders and advocates will be closely watching the developments and potential impacts of these policy shifts on the future of cannabis in the United States. The real test will be whether these historic promises translate into effective action and lasting change if Trump returns to office.
