Tag: rescheduling

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Banking and Restructuring Controlled Substance Act Legislation Regulatory Compliance

DOJ Final Order Rescheduling Marijuana: Key Implications, Guidance, and Opportunities for State-Licensed Medical Cannabis Businesses

Frank A. Segall, Scott H. Moskol, and Shane A. Pennington —

On April 23, 2026, the U.S. Department of Justice (“DOJ”) reached a historic milestone in federal cannabis policy when Acting Attorney General Todd Blanche signed a final order transferring Food & Drug Administration (“FDA”)-approved marijuana products and all cannabis subject to a state medical marijuana license from Schedule I to Schedule III of the Controlled Substances Act (“CSA”).

For patients, providers, operators, lenders, investors, and virtually everyone involved in this industry, this marks one of the most significant federal cannabis developments in decades. The order takes effect immediately and creates a new pathway for state-regulated medical marijuana businesses to operate in compliance with both state law and federal controlled substances law for the first time in history. 

Although the order does not currently address recreational cannabis, its impact on the industry is significant. Blank Rome is committed to guiding clients through these policy changes and helping them leverage emerging opportunities in the sector, which we believe will further benefit the industry as a whole. Here are the significant highlights and impacts of the policy change. 

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Banking and Restructuring Controlled Substance Act Interviews Legislation Regulatory Compliance

What Cannabis Lenders Think Rescheduling Will Mean for Capital Markets

Gustav Stickley V —

The prospect of federal rescheduling of cannabis has the lending community buzzing. We recently sat down with Alex Mazza, Director of Underwriting at Chicago Atlantic Group, as well as Michelle Haughton and Bobby Boyda of Needham Bank, to get their take on what rescheduling could mean for borrowers, lenders, and the broader capital markets.

Stronger Borrowers, Bigger Demand

One of the most immediate effects lenders anticipate is a meaningful improvement in borrower credit profiles, particularly for operators with retail operations. With the burden of Section 280E potentially lifting, operators should see more available cash on their balance sheets, thus deepening the pool of eligible borrowers. Mazza emphasized that this will drive increased demand for capital—but crucially, not an immediate increase in capital supply. In his view, new lenders are unlikely to rush into the industry given cannabis’ continued federal illegality and the robust internal processes required to set up a cannabis lending program.

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Controlled Substance Act Legislation Meet Blank Rome Regulatory Compliance

2025 Wrap-Up: Historic Cannabis Rescheduling

Blank Rome’s Cannabis Practice Applauds Milestone EO and Anticipates Continued Developments and Opportunities in 2026

Frank A. Segall and Shane A. Pennington —

President Trump recently signed Executive Order “Increasing Medical Marijuana and Cannabidiol Research,” published on December 18, 2025. This important measure directed federal agencies to reclassify cannabis from Schedule 1 to Schedule 3 under federal law, marking a major step forward for medical research, patient access, and the broader cannabis industry.

In recognition of this milestone, we would also like to acknowledge entrepreneur and philanthropist, Howard Kessler, for his visionary leadership and commitment to expanding medical cannabis access for seniors through The Commonwealth Project, which aligns with this significant occasion.

“We congratulate Howard Kessler on his vision, perseverance, and critical involvement in advancing medical cannabis access for senior healthcare through The Commonwealth Project, which resulted in President Trump’s historic Executive Order rescheduling cannabis from Schedule 1 to Schedule 3. Howard Kessler championed a cause and became its champion,” said Frank A. Segall, partner and co-chair of the Cannabis practice.

Following this Executive Order, Blank Rome’s Cannabis team has been actively engaging with the media, providing insights and analysis on the implications of rescheduling cannabis.

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Controlled Substance Act Legislation Meet Blank Rome Regulatory Compliance

Blank Rome Poised to Guide Clients Through Marijuana Rescheduling

Shane A. Pennington, Frank A. Segall, and Scott H. Moskol —

As the cannabis industry anticipates a significant executive order that could reschedule marijuana from Schedule I to Schedule III, Blank Rome’s Cannabis industry group is ready to guide clients with strategic insight and timely advice. Regulatory authority and Blank Rome partner Shane A. Pennington, with the support of Cannabis industry group co-chairs Frank A. Segall and Scott H. Moskol, have been directly involved in addressing the Department of Justice’s proposal for rescheduling marijuana on behalf of our clients. Encouraging updates continue to emerge daily, and we believe an executive order authorizing this change will be issued soon.

Shane, Frank, Scott, and Blank Rome’s team of cannabis attorneys are at the cutting edge of industry trends, closely following and influencing policy developments in Washington, D.C. The Cannabis industry group is dedicated to keeping our clients updated in real time, helping you act swiftly and take advantage of new possibilities arising from this historic development.

Once a clear path is set by executive order, our team will host a series of meetings and webinars to help clients navigate the evolving regulatory landscape and maximize the benefits of rescheduling. Building on our longstanding leadership at the forefront of the cannabis industry, our deep knowledge of legal and regulatory issues enables us to guide clients through emerging changes, so they can confidently navigate and benefit from the evolving market.

As you prepare for this transformative moment in the industry, trust Blank Rome to be your partner every step of the way. For questions or to learn more about our services, please contact us.

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Controlled Substance Act Legislation Meet Blank Rome Regulatory Compliance

Federal Marijuana Rescheduling Effort Challenged in Congress

Marc A. Polito —

Where Things Stand Now

Last week, Republican lawmakers in Congress took a major step to block President Donald Trump’s potential move to reschedule marijuana. The GOP-controlled House Appropriations Committee approved a spending bill that would prohibit the Department of Justice (the “DOJ”) from using federal funds to reschedule or deschedule marijuana under the Controlled Substances Act. This move comes as the Trump administration signals it is considering reclassifying cannabis from Schedule I to Schedule III, a change that would have significant implications for the industry and for federal-state relations.

The bill, advanced by the House Appropriations Committee, includes explicit language: “None of the funds appropriated or otherwise made available by this Act may be used to reschedule marijuana… or to remove marijuana from the schedules established under section 202 of the Controlled Substances Act.” This provision, if enacted, would effectively freeze the ongoing federal review process and reserve the authority to change marijuana’s status exclusively for Congress, rather than the executive branch.

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