DEA Marijuana Rescheduling Hearing Set for June 29: What It Means for the Cannabis Industry

By Justice — Elevated Club NYC

The cannabis industry is once again watching Washington.

On June 29, 2026, the U.S. Drug Enforcement Administration (DEA) will begin a highly anticipated hearing that could help determine whether cannabis should move from Schedule I to Schedule III under federal law. The hearing is scheduled to run through July 15 and is widely viewed as one of the most significant federal cannabis policy events in modern history. (Federal Register)

For years, cannabis businesses, patients, advocates, researchers, and investors have pushed for federal reform. While dozens of states have legalized cannabis in some form, federal law has remained largely unchanged. Cannabis has continued to sit alongside drugs classified under Schedule I, creating conflicts between state markets and federal regulations. (Moritz College of Law)

In April 2026, the Department of Justice and DEA issued an order moving certain state-licensed medical cannabis products and FDA-approved cannabis medications into Schedule III. However, adult-use cannabis remains federally restricted, leaving much of the industry waiting for broader action. (Reuters)

The upcoming hearing is designed to examine whether cannabis as a whole should be transferred to Schedule III. If that happens, the impact could be substantial. (Scarinci Hollenbeck)

One of the biggest issues involves taxes. Cannabis businesses currently face IRS Section 280E, which prevents many operators from deducting ordinary business expenses. Moving cannabis to Schedule III could potentially eliminate that burden for qualifying businesses and improve profitability across the industry. (Moritz College of Law)

Research could also expand dramatically. Scientists have long argued that Schedule I restrictions create unnecessary barriers to studying cannabis. A Schedule III classification would make research less burdensome and could accelerate medical discoveries involving cannabinoids and therapeutic applications. (Moritz College of Law)

Financial institutions are also paying attention. While rescheduling would not automatically solve banking challenges, many industry observers believe it could encourage more traditional financial services to enter the cannabis space. Greater access to banking, lending, and payment processing would be a major step forward for operators nationwide. (Moritz College of Law)

At the same time, expectations should remain realistic.

Even if cannabis moves to Schedule III, it would not become federally legal overnight. State regulations would still govern local markets, interstate commerce questions would remain unresolved, and federal agencies would continue developing guidance for the industry. (Moritz College of Law)

The hearing itself has already generated controversy. Reports indicate that some cannabis reform advocates and organizations were excluded from participating, while opponents of rescheduling received invitations to testify. Critics argue that a hearing of this magnitude should include a broader range of perspectives from patients, businesses, and industry stakeholders. (Marijuana Moment)

Regardless of the outcome, June 29 represents a pivotal moment.

The federal government is actively reconsidering cannabis policy in a way that would have seemed impossible a decade ago. Whether the result is full Schedule III status, partial reform, or additional delays, the decisions made during this process will influence the future of cannabis businesses, consumers, and medical research for years to come.

For operators, brands, and consumers across New York and beyond, this is the cannabis story to watch in 2026.

As the hearing begins, one thing is clear: the conversation around federal cannabis reform is no longer about if change is coming. It’s about how far that change will go.