💸 The Tape

By now, you’ve probably heard the headline: President Trump has directed Attorney General Pam Bondi to complete the process of moving marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). That sounds decisive—and politically it is—but legally, the story doesn’t end with a Sharpie and a press release.

So what actually happens after the attorney general signs off? And why does it still take time? Let’s break it down without the legal fog machine.

Step One: DOJ Issues the Final Rule (This Is the Big One)

Once Attorney General Bondi approves the rescheduling decision, the Department of Justice (through the DEA) issues what’s called a Final Rule. This rule formally amends marijuana’s classification under federal law.

This isn’t a memo or guidance—it’s a binding regulation. Think of it as the federal government updating its official rulebook rather than politely suggesting a change.

The Final Rule must:

• Address the administrative record (studies, public comments, and testimony)

• Respond to significant objections raised during the process

• Explicitly state the new scheduling classification

This is the moment cannabis officially stops being legally grouped with heroin and LSD. Not symbolic—actual law.

Step Two: Publication in the Federal Register (Law Meets Ink)

After DOJ finalizes the rule, it gets published in the Federal Register, which is essentially the government’s legal bulletin board. Publication matters because it triggers the clock.

Most rules become effective 30 to 60 days after publication, unless the agency specifies otherwise. During this window:

• Federal agencies prepare for compliance changes

• Courts get ready for inevitable lawsuits

• Industry lawyers refresh their LinkedIn posts

Once the effective date hits, Schedule III is no longer theoretical—it’s enforceable.

Step Three: The Legal Challenges (Because of Course)

Any major regulatory change attracts litigation, and cannabis rescheduling will be no exception. Opponents—likely including prohibitionist groups or certain industry-adjacent organizations—can file lawsuits arguing that the DEA:

• Misapplied scientific standards

• Ignored international treaty obligations

• Acted arbitrarily or too quickly

Here’s the key point: lawsuits do not automatically stop the rule.

To pause rescheduling, challengers would need a court-issued stay, which requires showing serious legal harm and a likelihood of success. That’s a high bar—especially given the extensive scientific review already conducted.

Translation: litigation is expected, but reversal is unlikely.

Step Four: Immediate Real-World Effects

Once Schedule III takes effect, several things happen quickly:

1. IRS Code Section 280E disappears for cannabis businesses.
Companies can deduct normal business expenses for the first time. That alone materially improves profitability.

2. Research barriers fall.
Universities, hospitals, and pharmaceutical firms can study cannabis without navigating Schedule I restrictions.

3. Federal posture shifts—even without legalization.
Cannabis remains illegal federally, but enforcement priorities, compliance treatment, and agency attitudes all soften.

This is regulatory gravity, not a switch flip.

Step Five: What Doesn’t Automatically Change

To manage expectations (a lawyer’s favorite pastime):

• Cannabis is not federally legalized

• Interstate commerce remains prohibited

• Banks do not suddenly get blanket safe harbor

• States still control their own markets

Rescheduling is powerful—but it’s not a magic wand.

Why the Process Matters More Than the Politics

What makes this moment significant isn’t just who ordered it—it’s how thoroughly the process has been built. The HHS recommendation, the public comment period, and the administrative record all matter because they insulate the decision from easy reversal.

In legal terms, this is how you make policy stick.

If DOJ publishes the Final Rule on the accelerated timeline now being discussed, cannabis will enter Schedule III by spring. That would mark the first change to marijuana’s federal status in over 50 years—and the beginning of a very different regulatory era.

Not legalization. Not the end of the fight. But undeniably, a turning page.

🗞️ The News

📺 YouTube

Is Cannabis Rescheduling Finally Happening This Month? | TTB Powered by Flowhub

What we will cover:

✅ Is cannabis rescheduling actually happening this month — or are the lawyers about to slow things down again?

On today’s episode of TDR Trade to Black presented by Flowhub, Anthony and Shadd open the first full week of 2026 with a mix of real-time dealmaking and hard policy reality out of Washington.

The show starts with Anthony and Shadd breaking down today’s newly announced acquisition of Grön by Wyld — one of the more notable branded edibles transactions we’ve seen recently. We talk through why this deal matters, what it says about consolidation in cannabis, and why large brands are moving early as the year gets underway.

After that, we’re joined for the first time in 2026 by Michael Bronstein, President of the American Trade Association for Cannabis & Hemp, for a new Weekly Insider’s Edge segment. Michael explains where the cannabis rescheduling process actually stands right now, including why the DEA appeal process remains unresolved despite President Trump’s executive order.