There’s a new executive order out of the White House. And it could change the future of the cannabis business in America.

What’s happening:

  • President Donald Trump has signed a new executive order to reschedule cannabis to a Schedule III controlled substance in the United States of America

Why it matters:‍

  • The new executive order from President Donald Trump specifically directs the Drug Enforcement Administration to expedite their rescheduling of cannabis

Going deeper:‍

  • Once the Drug Enforcement Administration formally reschedules cannabis in the United States clinical research will become significantly easier for both universities, drug companies and hospitals
  • Publicly traded cannabis companies would also be a major benefactor of cannabis being a Schedule III controlled substance as it is widely expected that would remove the 280E rule which does not currently allow cannabis businesses to write off normal business expenses for tax deductions while cannabis is still a Schedule I controlled substance

The fine print:‍

  • The Drug Enforcement Administration ultimately still needs to issue a final ruling on cannabis before it will officially become a Schedule III controlled substance

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