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While federal marijuana policy trends toward less restrictive treatment, hemp faces a sharp regulatory contraction. Late 2025 legislation narrowed what qualifies as lawful hemp and squarely targeted intoxicating hemp-derived products—setting up what many in the industry view as a high-impact compliance and commercial “cliff” in 2026. For hemp brands, retailers, manufacturers, and ancillary partners, the immediate issue is not theory: it is whether current product portfolios, contracts, and distribution channels remain viable under the new federal definition and potency limits.

Continue Reading Cannabis in 2026 – Part II: Hemp Tightening in 2026—The Compliance Cliff, CBD Carve-Out Signals, and Business Risk

Federal cannabis policy is entering 2026 in a “split-screen” posture: marijuana appears to be moving toward a less restrictive federal status, while hemp is facing a major federal contraction (covered in our next installment, Cannabis in 2026 – Part II: Hemp Tightening in 2026—The Compliance Cliff, CBD Carve-Out Signals, and Business Risk). For cannabis operators, investors, and counsel, the immediate task is practical: separate what a Schedule III move would change (materially) from what it would not (often misunderstood). This is a rapidly evolving area. The observations below reflect our current predictions based on the existing statutory and regulatory framework, the Administration’s stated priorities, and likely implementation dynamics. These forecasts may change as the U.S. Department of Justice (DOJ) and U.S. Drug Enforcement Agency (DEA) action, agency guidance, litigation, or congressional activity develops

Continue Reading Cannabis in 2026 – Part I: Marijuana Rescheduling—What’s Moving, What Won’t, and Why It Matters

In a much-anticipated move, sources recently reported that the Drug Enforcement Administration (“DEA”) will recommend rescheduling cannabis from a Schedule I substance to a Schedule III substance under the federal Controlled Substances Act.[1] This recommendation will likely be based on the Health and Human Services Report, which evaluated scientific evidence of cannabis use for medical purposes and determined that cannabis does have accepted medical value with a higher safety profile than Schedule II medications.[2] The DEA’s recommendation is also in line with President Biden’s directive for the Federal government to take steps to review how cannabis is presently scheduled under federal law.[3] In response to the DEA recommendation, the White House Office of Management and Budget will review the recommendation. If approved, there will be a public hearing allowing experts and the public to weigh in on rescheduling. Absent any major meritorious objections, cannabis will then be rescheduled from a Schedule I substance to a Schedule III substance.

Continue Reading Bridging the Gap: Cannabis Rescheduling to Align Policy with Research

On August 29, 2023, the U.S. Department of Health and Human Services (HHS) made a groundbreaking recommendation to the Drug Enforcement Administration (DEA) – that cannabis should be rescheduled from Schedule I to Schedule III under the Controlled Substances Act (CSA). This recommendation was made pursuant to President Biden’s request that the Secretary of HHS and the Attorney General initiate a process to review how cannabis is scheduled under federal law. In recent days, the unredacted 252-page analysis supporting the August recommendation was released pursuant to a Freedom of Information Act request. While the DEA is presently reviewing HHS’s recommendation and has final authority to schedule a drug under the CSA, it is ultimately bound by HHS’s recommendations on scientific and medical matters.

Continue Reading Cannabis Rescheduling: HHS Findings and Legal Implications

On August 29, 2023, less than one year after President Biden’s directive to federal officials, including the U.S. Department of Health and Human Services (“HHS”) and the U.S. Attorney general, to conduct a review of cannabis’ classification under federal law,[1] HHS submitted a letter to the U.S. Drug Enforcement Agency (“DEA”) recommending a change in cannabis’ classification under the federal Controlled Substances Act (“CSA”).

Continue Reading Reclassifying Cannabis as a Schedule III Substance – Will the DEA Agree?

On November 10, 2022, in the matter Variscite NY One, Inc. v. State of New York, et al., the U.S. District Court for the Northern District of New York granted the plaintiff’s a motion for a preliminary injunction against the State of New York (“NYS”), the New York State Office of Cannabis Management (“OCM”), and the Executive Officer of the OCM, Christopher Alexander issuing any cannabis licenses under NYS’s conditional adult-use retail dispensary (“CAURD”) application program in 5 of the state’s 14 geographic regions.

Continue Reading Federal Judge in NY Issues Preliminary Injunction to Block Retail Cannabis Licenses on Constitutional Grounds

This article was originally published in the November/December issue of ELFA’s Equipment Leasing & Finance magazine.

In mid-July 2022, the United States House of Representatives passed provisions that would allow legitimate cannabis-related businesses to access federally regulated financial services. This marks the seventh time the House has approved a version of the Secure and Fair Enforcement (SAFE) Banking Act. The original version of federal cannabis banking reform was introduced nine years ago by Rep. Ed Perlmutter (D-Colo). The passage of the SAFE Banking Act, either as stand-alone legislation or as amendments attached to must-pass bills, would prohibit federal banking regulators from penalizing a federally regulated depository institution for providing banking services to cannabis businesses. Presently, cannabis businesses are essentially deprived of federally regulated financial services, which include the ability to raise capital, obtain loans and process payment. 

Continue Reading Federal Cannabis Banking Reform: What Happened?

In a historic move, today, President Joe Biden announced a three-step program to bring broad changes to federal cannabis policy. As an initial step towards reform, President Biden will pardon all federal offenders convicted of simple marijuana possession. According to administration officials, the pardons will be issued through an administration process overseen by the Department of Justice. Those eligible for the pardons will receive documentation showing they were officially forgiven for their crime.

Continue Reading BREAKING NEWS: Biden to Pardon Federal Marijuana Possession Convictions

Recreational cannabis is now legal in 19 states and Washington D.C., driving the growth of legal cannabis sales estimated at $33 billion this year—up 32% from 2021—and expected to reach $52 billion by 2026.[1] This movement signals that financial investment in cannabis is not abating but accelerating notwithstanding the impact of the lingering COVID-19 pandemic. This growth in the cannabis industry, of course, also means that operators and their investment partners face commercial risk, including insolvency.

Continue Reading The Cannabis Conundrum: Can Cannabis Companies File Chapter 15?

Federal cannabis reform is once again on the move in Congress. On Friday, April 1, 2022, the U.S. House of Representative passed the latest iteration of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. This is Congress’s oldest comprehensive measure, and it aims to decriminalize cannabis on the federal level by removing it from the list of controlled substances while providing certain social reforms to address the detrimental repercussions of the War on Drugs.[1]
Continue Reading The House Does It Again: MORE Act Ready for Senate Action