"Federal Health Agency Pushes for Marijuana Rescheduling, Sparks Hope for Legalization"

The Department of Health and Human Services (HHS) has recommended that cannabis be moved from Schedule I to Schedule III of the Controlled Substances Act, marking a historic acknowledgment that cannabis has been misclassified. While this recommendation does not immediately legalize marijuana or impact the cannabis industry significantly, it could lead to the elimination of the 280e tax code, which currently hinders profitability for cannabis businesses. This change may also attract new sources of capital and lending to the industry. Additionally, rescheduling could prompt the Toronto Stock Exchange and potentially other exchanges to accept U.S.-based cannabis companies. The HHS recommendation may also encourage Congress to take further action on cannabis reform. Overall, this announcement brings the United States closer to a post-prohibition reality.