Schedule III, Now That It’s Actually Rolled Out What Are the Implications?

Okay, by now we all know that cannabis was rescheduled to Schedule III, right? Well, sort of. This, like most of what has rolled out concerning cannabis legislation, is a mixed bag, and a lot of it is shit. One might even describe some of it as a paper bag lit on fire with dog shit in it. Furthermore, any movement concerning cannabis legislation under this administration is bound to be fucked.

Here we are, one step forward, two steps back. Cannabis is NOT rescheduled to Schedule III, only medical cannabis and FDA-approved drugs like Epidiolex are rescheduled to schedule III. Tax Code 280E is only repealed for medical cannabis and FDA-approved drugs.

Hemp-derived THCa is still not allowed on the books federally, although Chicago and other municipalities can opt in to allowing hemp-derived products like hemp-derived THC beverages the way Chicago has allowed for them. Even the United Center is serving hemp-derived beverages at concerts and sporting events.

Here are the summaries of the major provisions of the rescheduling of medical cannabis:

• Tax Deductions for Medical Operators: State-licensed medical marijuana businesses are now exempt from Internal Revenue Code Section 280E, which previously barred companies trafficking Schedule I or II drugs from deducting standard business expenses.
• Federal DEA Registration: Handlers of the newly classified products (manufacturers, distributors, or dispensers) must obtain or maintain a DEA registration. The DEA Medical Marijuana Dispensary Registration Portal was launched in April 2026, with an annual registration fee of $794 per location.
• Research and Development: Research on medical cannabis is subject to less burdensome regulatory and security requirements than under Schedule I.
• Prescription Requirements: FDA-approved Schedule III marijuana products require a prescription before dispensing, unless dispensed directly by a registered practitioner.
• Import/Export Controls: The final order amends regulations to institute import and export permit requirements for Schedule III marijuana.

So obviously some of this stuff is good, but some is more government regulation, and as a grower I can tell you that more government interaction in the form of fees is never a good thing.

Often times cannabis margins are razor thin, which is why so few dispensaries survive, especially in unlimited licensure municipalities. So when you have more fees to pay, generally you have more corners to cut. However, the fees implemented by this new legislation pale in comparison to the money “medical” dispensaries and FDA-approved drugs will be able to net by finally being allowed to deduct their business expenses now that they no longer have to conform to 280E, which is the most trash legislation ever implemented for cannabis businesses.

What Is the Difference Between Medical and Recreational Cannabis?

Short answer? Nothing. At least in Colorado. As a person that has worked in multiple commercial grows, the cannabis that is grown in the same rooms, under the same lights, with the same pesticides, is placed on both sides of the same dispensary: recreational and medical. I go into more details in my blog post here: The Difference Between Medical and Recreational Cannabis.

So what are the implications of these benefits afforded to medical dispensaries and not recreational dispensaries? To the initiated, it should be obvious. If I were a general manager at a recreational dispensary, you better believe I would be doing whatever it took to go from recreational to medical, considering (at least in Colorado, and at least concerning the actual farming of the product) there is no real difference in producing the product. Now, other states are different, no doubt, and there (hopefully) is more red tape to go through, buuuut in my extensive experience in cannabis, I think that no, there probably isn’t really much of a difference.

Conclusion

What do we learn? Well, the rich get richer, and it opens up the door for Big Pharma and MSOs to basically do whatever the fuck they want. Opening up restrictions on medical trials is sort of a win, but if you are bombarded with the onslaught of shitty pharma ads that sometimes contain death as a side effect, you quickly learn that the “medical trials” in this country are a bit of a fucking joke. So as always: grow your own, save your money, save your health, and save yourself. One love.