Why marijuana reform is real change, but not the ultimate victory

(This is a contributed guest column. It will be considered MJBizDaily (guest writer, please submit your request here.)

President Donald Trump’s historic order on Thursday to speed up the reclassification of marijuana from Schedule 1 to Schedule 3 is the most meaningful federal marijuana policy win — ever. It’s an admission many in the industry have been waiting for: marijuana has accepted medical use and is not in the same category as more dangerous drugs.

All that being said, it is important to distinguish substance from symptoms. Marijuana reform creates a real opportunity, but it also comes with restrictions, law enforcement responsibilities and a reminder that there is a long road ahead.

That marijuana reform actually changed

Once the rescheduling is complete, federal law will no longer classify cannabis as a Schedule I substance, a class of drugs with no medical value and high abuse potential. In Schedule 3, marijuana will be alongside drugs such as Tylenol with codeine, anabolic steroids, and the synthetic THC drug dronabinol. These are known medically but are still strictly regulated.

The change will be completed using federal law through the Department of Justice, which includes the US Drug Enforcement Administration. But until that process is completed, the organization’s existing controls remain in place. In other words, this is a phased change, not an overnight change.

Most importantly: cannabis is still not federal legal. And as Trump said Thursday, it won’t be anytime soon.

Why cannabis reform is important to cannabis businesses

Federal taxes are finally starting to take shape

Once Schedule 3 is fully implemented, marijuana businesses will no longer be subject to Internal Revenue Code Section 280E. That provision prevented operators from deducting normal business expenses such as payroll, hiring, marketing and technology on their federal tax returns.

The removal of the 280E is not a small detail to calculate. It fundamentally changes the financial reality of running a compliant cannabis business. For many users, it will significantly reduce tax rates and improve cash flow, allowing reinvestment in staff, infrastructure and compliance.

Barriers to medical research are falling

Schedule 3 status lowers government barriers to medical and scientific research. Universities, hospitals and research institutes will have an easy way to study cannabis, its risks and its therapeutic potential.

This reinforces the medical legitimacy of cannabis and shifts the conversation to data, results, and standards, where appropriate. FDA oversight still applies to any product that requires a prescription or intermediate methods, but the door to reliable research is now wide open.

Banking may improve, but slowly

Schedule 1 status is one of the biggest red flags for financial institutions considering providing services to cannabis users. The restructuring alone could encourage some banks and lenders to re-evaluate their mortgage situation.

However, this does not automatically solve the cannabis bank. Full generalization still requires further regulatory clarification or Congressional legislation. Users should expect slow progress, not instant access.

Expectations for compliance will increase, not decrease
Schedule 3 does not mean simple control. In many ways, it shows the opposite.

As cannabis moves closer to a traditionally regulated industry, expectations regarding audit readiness, reporting accuracy and transparency are likely to increase. State laws remain unchanged, and federal scrutiny will continue to evolve.

What is done is reprogramming marijuana not do

It is very important to clarify what this period does not accomplish.

• It happens not Cannabis is federally legal.
• It happens not allow international trade.
  It happens not remove the authority to enforce federal – or state regulation.
  It happens not exceed US Food and Drug Administration standards for medical or pharmaceutical use.

This is progress. But it is not an endorsement. And it is not a repeal of the law.

Where cannabis practitioners should be focusing right now

Restructuring is raising the bar across the industry. Marijuana businesses treat this win as an opportunity to win and lose the point.

Employees should prepare:

• Traditional accounting and financial auditing.
• High expectations for clean, secure data.
• Strong reporting on all sales, marketing, and promotions.
• Long-term alignment with federal and state oversight.

This moment rewards ethical operators – those who already run transparent, compliant and data-driven businesses. It also exposes different system vulnerabilities and shortcuts that may not hold up under further scrutiny.

A Step Forward – With Eyes Open

The reclassification of marijuana to Schedule 3 is an acknowledgment of reality that is long overdue. It guarantees years of patient experience, medical advocacy and responsible state regulation.

But progress in cannabis has been ever-increasing. This move opens doors in terms of taxation, research, and legality, but it also shows that the industry is taken seriously – and will be held to high standards as a result.

That’s not a bad thing. It’s a sign that cannabis continues to move from the fringes to a controlled, accountable, and sustainable future.

Norman Yousif is the CEO and founder of Off The Charts (OTC), a leading multi-state cannabis dispensary chain.