The federal government just acknowledged what we’ve all known for decades: cannabis has legitimate medical value.
On December 18, 2025, President Trump signed an executive order directing federal agencies to move cannabis from Schedule I to Schedule III of the Controlled Substances Act. This is the most significant shift in federal cannabis policy in over 50 years, and it changes the game for dispensaries in ways that go far beyond taxes.
What Just Happened?
For context: Schedule I is where the federal government puts substances it deems to have “no currently accepted medical use” and a “high potential for abuse.” Cannabis has sat there alongside heroin since the Controlled Substances Act was passed in 1970.
Schedule III? That’s where you find drugs like ketamine and anabolic steroids, substances the government recognizes as having medical applications, even if they come with risks.
The move isn’t descheduling. It’s not full legalization. But it represents real momentum in federal cannabis policy.
The Immediate Impact: 280E Relief
Let’s talk about money.
For decades, cannabis businesses have operated under Section 280E of the IRS tax code, a provision that prevents companies selling Schedule I or II substances from deducting normal business expenses. That means dispensaries couldn’t write off rent, payroll, marketing, or even the cost of their point-of-sale systems.
Cannabis Rescheduling to Schedule III eliminates that burden.
Dispensaries will finally be able to take standard business deductions like every other retail operation in America. For many operators, this could mean the difference between breaking even and actually being profitable. Cash flow improves. Reinvestment becomes possible. Growth becomes sustainable.
The DOJ and DEA still need to finalize the rulemaking process, so exact timelines are unclear. But the direction is set. If you’re a dispensary owner, now’s the time to talk to your accountant about what 280E relief will mean for your bottom line.
What Stays the Same (For Now)
State cannabis programs will continue operating as they do today. Your license doesn’t change. Your compliance requirements don’t change. Your menu doesn’t change.
Despite what you might hear, cannabis rescheduling doesn’t hand the industry over to pharmaceutical companies or force operators into FDA-style approval processes. It simply acknowledges that cannabis has medical value and doesn’t belong in the same category as heroin.
Banking remains complicated. Interstate commerce is still federally prohibited. And cannabis is still a controlled substance, just a less restricted one.
What’s Next for the Industry
Cannabis rescheduling opens doors that have been locked for decades.
Research barriers come down. Scientists will have an easier time studying cannabis, which means better data, safer products, and more credibility with both regulators and consumers. Expect to see more clinical trials, more peer-reviewed studies, and more evidence-based product development.
The stigma softens. When the federal government formally acknowledges that cannabis has medical value, it legitimizes the entire industry. That matters for investors, for lenders, for landlords, and for the millions of Americans who still associate cannabis with criminality rather than medicine.
State programs may expand. Some states have hesitated to legalize or expand their cannabis programs because of the federal Schedule I classification. With that barrier lowered, expect more states to move forward with medical or adult-use programs.
Why This Matters for E-commerce
Here’s where things get interesting for dispensaries.
As the industry legitimizes, consumer expectations rise. People don’t want to shop on clunky websites. They want polished, branded, easy-to-use online stores that work the way modern retail is supposed to work.
Cannabis Rescheduling accelerates this shift.
With 280E relief freeing up cash flow, dispensaries will have more resources to invest in their digital infrastructure. That means better websites, better user experiences, and better conversion rates. It means moving away from third-party menus that own your data and control your customer experience, and toward native e-commerce platforms that put you in the driver’s seat.
And as the industry matures, the dispensaries that win will be the ones that treat e-commerce as a core part of their business, not an afterthought.
Why We’re Excited (and What Cannabis Rescheduling Means for Dispensaries)
At Rank Really High, we’ve been building e-commerce solutions for cannabis dispensaries because we believe this industry deserves better. We believe dispensaries should own their websites, their data, and their customer relationships. We believe that good design and smart merchandising strategies shouldn’t be reserved for mainstream retail; they should be the standard in cannabis too.
Rescheduling validates everything we’ve been saying.
The federal government just confirmed what forward-thinking dispensaries already know: this isn’t a temporary gray market. This is a legitimate, growing, multi-billion-dollar industry that deserves professional, best-in-class digital infrastructure.
E-commerce becomes more important than ever because:
- Increased competition means differentiation matters. As the industry legitimizes, more players will enter the market. The dispensaries that stand out will be the ones with strong branding, seamless online experiences, and data-driven merchandising strategies.
- Consumer expectations are rising. People are done with janky menus. They want the same level of polish and convenience they get from shopping at Target or ordering from Amazon. If your website doesn’t deliver, they’ll go somewhere else.
- Data becomes your competitive advantage. When you own your e-commerce platform, you own your customer data. You can see what products are moving, what promotions are working, and what customers are searching for. That insight is gold.
- SEO and discoverability improve. Native e-commerce sites with unique, indexable product and category pages rank better in search engines. Cannabis rescheduling means more people will be searching for cannabis products online. If your site isn’t built to be found, you’re leaving money on the table.
- Your brand matters more than ever. As cannabis normalizes, the dispensaries that thrive will be the ones that build strong, recognizable brands. Your website is the face of your business online. It should reflect your identity, your values, and your commitment to quality, not look like every other templated menu site.
The Path Forward
This is a pivotal moment, but it’s not the final step. The DOJ (Department of Justice) and DEA ( Drug Enforcement Administration) still need to complete the rulemaking process. Advocacy groups like the National Association of Criminal Defense Lawyers are pushing for full descheduling and comprehensive reform through legislation like the MORE Act.
But regardless of what happens next at the federal level, one thing is clear: the cannabis industry is maturing, legitimizing, and leveling up.
Dispensaries that adapt, that invest in better digital infrastructure, better customer experiences, and better data ownership, will be the ones that thrive in this new era.
Cannabis Rescheduling isn’t the end of the road. It’s the beginning of what’s possible.
Ready to build a better online store? The smartest dispensaries run on Rank Really High. Let’s talk.