The Department of Justice (DOJ) has announced that hundreds of medical cannabis dispensaries will soon receive federal registrations under the new Schedule III designation. The Drug Enforcement Administration (DEA) is moving forward with issuing more than 900 registrations to retailers across several states, including Alabama, Florida, Mississippi, South Dakota, Texas, Virginia, and West Virginia.
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The DEA did not release the dispensaries’ names. According to the DEA, more than 7,000 registration applications have been submitted.
Businesses seeking to operate legally under the new medical cannabis framework must obtain federal registration. The move to Schedule III also removes a major federal tax obstacle for qualifying operators: Section 280E, which prohibits ordinary business deductions for companies trafficking in Schedule I or II controlled substances.
The announcement is the “first phase” of implementing Attorney General Todd Blanche’s April order that moved state-legal medical marijuana from Schedule I of the Controlled Substances Act to Schedule III.
“The American people deserve access to the best medical treatments in the world,” Blanche said in a press release.
The attorney general added that “the regulated distribution of medical marijuana… ensures broader access to chronic pain treatment and the safety of the American people.”
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Representatives for the DOJ referred GreenState to the press release when asked to comment. The White House referred GreenState to the DOJ.
Steph Sherer, founder of the medical cannabis advocacy group Americans for Safe Access, celebrated the news in a statement sent to GreenState.
“For the first time, the federal government is recognizing and registering the medical cannabis dispensaries that patients fought to establish. This is a tremendous victory for patient access and an opportunity to build on 30 years of progress.”
Blanche noted that the DOJ will “continue prosecuting illegal marijuana trafficking and related criminal activity in accordance with federal law.” The press release specified that the registrations are for medical cannabis only, and recreational marijuana remains Schedule I pending separate administrative proceedings.
The DEA also published guidance outlining what medical cannabis businesses can do while their federal registration applications remain pending. Businesses that submitted complete applications within the designated 60-day window may continue operating under their state medical cannabis licenses while the DEA reviews their submissions.
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However, the agency warned that these businesses must establish compliant supply chains by November 29, limiting transactions to federally registered companies and other qualifying applicants.
The rollout represents a historic shift in cannabis policy, but it remains to be seen how the change will impact consumers or the market as a whole.
