Marijuana is currently classified as a Schedule I drug, a designation reserved for drugs with no currently accepted medical use and a high potential for abuse, such as heroin.as a lower-risk drug, which would in turn ease restrictions on the budding business, a spokesperson for the Drug Enforcement Agency told CNBC on Wednesday.
Marijuana is currently a Schedule I drug under the Controlled Substances Act, meaning it's deemed to have no currently accepted medical use and a high potential for abuse. Despite being legalized for recreational use in nearly half of states, marijuana's federal classification alongside drugs like heroin and LSD has hindered the industry's growth.
After enjoying a sales surge during the pandemic, the industry is in free-fall as investors turn away and capital dries up. The industry has also been barred from accessing most banking services, or from being traded across state lines, resulting in a glut of cannabis in many states and a drop in prices.A federal reclassification could potentially expand the market for marijuana, which is a multibillion-dollar industry in the U.S. and a cash crop in many newly legalized states.