The US Drug Enforcement Administration (DEA) has postponed its decision on reclassifying marijuana under federal drug laws until after the November election. A hearing on the proposed rule change is now set for December 2, delaying the final decision until after the new president takes office on January 25, 2025.

This proposed reclassification stems from a review of US cannabis policy commissioned by President Joe Biden in October 2022. The Department of Health and Human Services (HHS) conducted the review and concluded that marijuana has valid medical applications and meets the criteria for rescheduling under the Controlled Substances Act (CSA). Although the DEA had initially agreed to reschedule marijuana in April 2024, it opened a 60-day public comment period, which attracted 43,000 responses.

Analysis of the comments revealed that 92.45% were in favor of reclassifying marijuana, while just 7.55% opposed the reform. Many commenters urged the DEA to schedule a hearing on the matter, which has now been set for December 2.

This delay comes as a disappointment to regulated cannabis industry which stands to benefit from a reclassification. Current IRS tax regulations are stringent for the cannabis sector, and a change in classification could ease these restrictions. Industry leaders have expressed frustration, citing the uncertainty of the delay and the potential for a new presidential administration to overturn any decision made.

Despite the postponement, experts view the DEA’s decision to hold a hearing as an indication of the complexities and ongoing challenges of federal cannabis reform. Reclassifying marijuana could have major implications for the industry, including improved access to banking and financial services and reduced tax liabilities.

In the interim, the cannabis industry will continue to navigate the existing regulatory environment, with many businesses struggling due to the current system’s uncertainty and complexity. As the industry awaits the DEA’s decision, calls for a more comprehensive cannabis reform, including the possibility of descheduling the drug entirely, are growing.

For more information, you can go to the 'Rescheduling of Marijuana' statement from the DEA on the Federal Register: 
https://www.federalregister.gov/public-inspection/2024-19370/schedules-of-controlled-substances-rescheduling-of-marijuana