Cannabis Reclassification by DEA in USA

In 2024, hurdles around Cannabis keep falling away, following the recent legislative changes that have taken the USA by storm at a state level, as well as in places with fiercely punitive laws, such as Thailand making cannabis flower consumption legal in 2022 (although the latter has been reported to be trying to make steps towards decriminalization of the THC producing parts of the plant). Even places such as our motherland, the UK, are seemingly making progress, with an ever-growing number of private cannabis prescriptions being issued to UK patients. However, at least in the UK, this hasn't quite been the de-regulatory easing that people might have hoped as individuals are still receiving extremely harsh punishments compared to large parts of the world, an issue that some may speculate is tied to the private medical advancements here.

So once more, we look across the pond to our American neighbours to see how things are changing for the better as their next landmark decision has been unveiled on the world stage.

The USA Drug Enforcement Administration (aka the DEA) recently confirmed their plan to approve rescheduling Cannabis from a Schedule I narcotic to a Schedule III one. This change to legislation sets a new precedent for how Cannabis is viewed at a federal level and marks an extreme shift in federal policing, which in turn reflects the evolving perceptions and scientific understanding of Cannabis. Here's an in-depth look at what this rescheduling means for the nation, the potential impacts on various sectors, and what the future might hold.

The HHS, aka the US Health and Human Services division of the federal government, has recommended the reclassification based on a 252-page heavily detailed report and analysis that have now been unveiled in fully unredacted form.

Understanding the Controlled Substance Schedules

To fully realize the vast change this rescheduling proposal offers, we need to understand the five different schedules. Their potential for abuse, medical use, and safety under medical supervision categorize them.

The Controlled Substances Act (CSA) works by categorizing substances into five distinct schedules founded on the prospect of abuse, as well as their accepted medical benefits and safety under medical supervision. Any substance considered Sehcedule 1, like Cannabis used to be, is supposed to have an extremely high chance of abuse and has no accepted medical benefits and a lack of safety even with medical guidance or supervision. Schedule 1 includes hard drugs such as heroin and LSD. Conversely, Schedule III substances, where Cannabis now lies, are understood only to have a medium/ low potential for dependency and are also believed to have tangible medical uses. Examples include anabolic steroids and certain stimulants.

The Path to Rescheduling

The rescheduling of Cannabis follows years of advocacy, scientific research, and changing public opinion. Medical cannabis use is now legal in 38 states, and 23 states have legalized recreational use. The state-level acceptance and the mounting evidence of Cannabis’s medical benefits have been adding pressure on federal agencies to reconsider its classification, which is the catalyst for this move.

The DEA’s decision was heavily influenced by recommendations from the Department of Health and Human Services (HHS), which thoroughly reviewed the available scientific evidence. The HHS concluded that Cannabis does not meet the criteria for Schedule I and recommended its reclassification to Schedule III.

Implications of the Rescheduling

1. Medical Research and Development: The rescheduling to Schedule III significantly reduces the regulatory hurdles for researching Cannabis. Researchers will now find that undertaking studies are now much easier, leading to a better understanding of its medical benefits and potential risks. This could spur the development of new cannabis-based medications and therapies, particularly for conditions such as chronic pain, epilepsy, and anxiety.
2. Pharmaceutical Industry: Pharmaceutical companies can now more easily explore the potential of cannabis-derived compounds. This reclassification may lead to the introduction of new, FDA-approved cannabis-based drugs, similar to the current medications like Epidiolex (used for epilepsy) but with broader applications.
3. Banking and Financial Services: The rescheduling may also alleviate some of the banking and financial restrictions plaguing the cannabis industry. Banks and financial institutions have so far resisted the financial benefits of supplying cannabis businesses with banking services due to the illegality and severe risks associated with Schedule I substances. With Cannabis now a Schedule III substance, these institutions may feel more secure in offering banking services, loans, and other financial products.
4. Criminal Justice Reform: Although the rescheduling does not directly decriminalize Cannabis, it marks a step towards more rational drug policies. It may pave the way for future legislative efforts to reduce criminal penalties for cannabis-related offences and address the historical injustices associated with its prohibition. At any rate, the public speaking of cannabis in a favourable light at a federal level is good news to all propenents of the plant.
5. Economic Impact: The legal cannabis industry, already a multi-billion dollar market, is poised for further growth. Rescheduling could increase investment, job creation, and tax revenues at both the state and federal levels.This is especially the case if banks and financial insitutes decide they are now comfortable with offering their services for the cannabis industry.
6. Public Perception and Stigma: Rescheduling may also shift public perception of Cannabis. As it gains recognition for its medical utility and is classified alongside other accepted medications, the stigma associated with cannabis use is likely to diminish.

Challenges and Future Directions

While rescheduling Cannabis to Schedule III is a significant step forward, challenges remain. State and federal regulations will need to be harmonized, and there will be ongoing debates about the appropriate level of regulation and control. Additionally, issues such as driving under the influence of Cannabis, workplace safety, and youth access will require careful management.

The rescheduling also does not address the complexities of cannabis products currently available in state-legal markets, which include a wide range of THC concentrations and delivery methods. These products will need to be evaluated and regulated to ensure safety and consistency.

Conclusion

The DEA's decision to reschedule Cannabis from Schedule I to Schedule III is a monumental shift in U.S. drug policy. It reflects a growing recognition of the medical potential of Cannabis and aligns federal regulations more closely with the current scientific understanding and public opinion. This change opens new avenues for research, medical treatment, and economic growth, heralding a new era for Cannabis in America. As the landscape continues to evolve, stakeholders across various sectors will need to navigate the opportunities and challenges of this historic rescheduling. We hope that this ruling will result in widespread change in cannabis policy across the globe.