DEA Must Reconsider Cannabis Classification Amid Medical Benefits Confirmation
- Schedule I drugs, which include substances with no “currently accepted medical use and a high potential for abuse,” have included cannabis for the past 24 years. However, the Department of Health and Human Services (HHS) has now recommended the Drug Enforcement Administration (DEA) remove cannabis from this classification. This follows a review which found that cannabis has a “currently accepted medical use in treatment in the United States” and its “potential for abuse less than the drugs or other substances in Schedules I and II.”
- The HHS report found that over 30,000 healthcare professionals across the U.S. recommend the medical use of marijuana for more than six million registered patients suffering from at least 15 different medical conditions. The review found mixed effectiveness of cannabis in treating these conditions, with the largest evidence base for effectiveness being for pain, particularly neuropathic pain. Other conditions cited included anorexia, nausea and vomiting related to chemotherapy.
- If the DEA adopts the recommendation to move cannabis to Schedule III, it could have a significant impact on the U.S. cannabis policy and marketplace, including changes to tax reform, criminal justice, and access to interstate commerce. The rescheduling could also affect Section 280(e) of the IRS tax code, allowing cannabis businesses to deduct ordinary business expenses from their gross income, which they have been unable to do so far.
Schedule I Drugs and Cannabis
Schedule I drugs, as defined by the DEA, are substances with no accepted medical use and high potential for abuse. They include heroin, LSD, ecstasy, meth, peyote, and, for the past 24 years, cannabis.
Recent Document Release and Cannabis Rescheduling
On Friday, documents relative to the Department of Health and Human Service’ (HHS) review of cannabis were released. Federal researchers found that cannabis indeed “has a currently accepted medical use in treatment in the United States” and its “potential for abuse less than the drugs or other substances in Schedules I and II.” Thus, the HHS recommended to the DEA to reschedule cannabis.
Healthcare Professionals and Cannabis Usage
HHS officials found over 30,000 healthcare professionals in 43 U.S. jurisdictions can recommend medical marijuana for over six million registered patients for 15+ medical conditions.
Evidence of Cannabis’ Medical Effectiveness
The review showed mixed findings across indications, from inconclusive data to considerable evidence in favor of effectiveness, depending on the source. There is scientific support for therapeutic benefits of cannabis, including for treating anorexia, pain, nausea/vomiting related to chemotherapy. Neuropathic pain had the “largest evidence base for effectiveness.”
Future of the Cannabis Industry
Although a final DEA decision could take months, advocates and cannabis companies are optimistic about the cannabis rescheduling. “The move to Schedule III, if adopted by the DEA, will have sweeping impacts on U.S. cannabis policy and the U.S. cannabis marketplace,” said Brady Cobb, a D.C. lobbyist and CEO of Sunburn Cannabis. If or when cannabis is rescheduled, Section 280(e) of the IRS tax code would be inapplicable, allowing operators to deduct business expenses from their gross income.
Matt Darin, CEO of Curaleaf Holdings, also expressed optimism. “For the first time in history, we’re seeing federal health officials acknowledging the medical potential of cannabis. With the release of these documents, we are very optimistic that the move to reschedule is imminent.”
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