Changeflow GovPing Banking & Finance DOJ and DEA Reclassify State-Licensed Marijuana...
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DOJ and DEA Reclassify State-Licensed Marijuana From Schedule I to Schedule III

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Summary

The Department of Justice and Drug Enforcement Administration announced on April 23, 2026, that state-regulated marijuana products are now classified as Schedule III controlled substances under the Controlled Substances Act, down from Schedule I. The rescheduling reduces federal restrictions on medical marijuana and acknowledges state regulatory frameworks. A hearing is scheduled for June 29, 2026, to consider broader rescheduling of marijuana beyond state-licensed products.

Why this matters

Banks currently serving or considering serving state-licensed marijuana clients should reassess their federal legal exposure given this reclassification. The DOJ's statement signals a more permissive posture toward state-regulated marijuana, but banks retain independent authority to set their own service policies and should confirm their compliance frameworks reflect the updated CSA schedule.

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What changed

The DOJ and DEA have issued an order reclassifying marijuana products regulated by state medical licenses from Schedule I to Schedule III of the Controlled Substances Act. Schedule III drugs carry fewer restrictions than Schedule I substances and include examples such as testosterone and Tylenol with codeine. The action follows a 2024 proposal and fulfills a presidential executive order directing the attorney general to expedite marijuana rescheduling. The DOJ stated the order "recognizes the longstanding regulation of medical marijuana by state governments and the need for a common-sense approach to this reality."

Financial institutions that serve or are considering serving state-licensed marijuana businesses may experience reduced federal legal risk under this reclassification. Banks should review their controlled-substance policies, SAR-filing practices, and overall cannabis-banking risk frameworks in light of the DOJ's stated shift toward a more flexible enforcement posture. The June 29 hearing may provide further clarity on the scope of any additional rescheduling.

Hearing

Date
2026-06-29

Archived snapshot

Apr 24, 2026

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April 23, 2026 Reading Time: 1 min read The Department of Justice and Drug Enforcement Administration today announced they have reclassified marijuana and marijuana products regulated by state medical licenses as Schedule III drugs, which will expand their availability for medical purposes.

State-licensed marijuana is reclassified from Schedule I to Schedule III of the Controlled Substances Act by the order, which also initiates a new process to consider rescheduling marijuana more broadly. Officials in 2024 previously proposed reclassifying marijuana so it is no longer a strictly controlled Schedule I drug but instead a Schedule III drug, which has fewer restrictions. Examples of Schedule III drugs are testosterone and Tylenol with codeine. President Trump last year issued an executive order directing the attorney general’s office to expedite the rescheduling of marijuana.

In a statement, the DOJ said the new order “recognizes the longstanding regulation of medical marijuana by state governments and the need for a common-sense approach to this reality.”

The rescheduling only applies to marijuana products regulated by states. The DOJ and DEA will hold a hearing on June 29 to consider reclassifying marijuana more broadly as a Schedule III drug.

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CFR references

21 CFR 1301

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Last updated

Classification

Agency
ABA Banking Journal
Published
April 23rd, 2026
Instrument
Notice
Branch
Executive
Joint with
DEA DOJ
Legal weight
Non-binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Banks Consumers
Industry sector
4453 Cannabis 5221 Commercial Banking
Activity scope
Controlled substance scheduling Drug reclassification Medical marijuana regulation
Geographic scope
United States US

Taxonomy

Primary area
Cannabis
Operational domain
Compliance
Compliance frameworks
BSA/AML
Topics
Pharmaceuticals Banking

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