CV Sciences Inc (CVSI)

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According to a report by SA NewsToday on January 3, 2024, the Drug Enforcement Administration (DEA) is reviewing a recommendation from the Department of Health and Human Services to reclassify cannabis as a Schedule III controlled substance under U.S. law 12. This move could potentially open up cannabis to interstate trade and remove an expensive 280E tax burden that prevents legal cannabis companies from writing off normal business expenses 1. The news has caused a rally in cannabis stocks 2.

It is important to note that the DEA has the final authority to schedule or reschedule a drug under the Controlled Substances Act 1. While the move marks a “tremendous price of progress” for cannabis, it’s unlikely that the DEA will overturn the recommendation from the Department of Health and Human Services because the HHS and the U.S. Food and Drug Administration are considered the scientific authorities in the federal government, while the DEA handles law enforcement 1.