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Here’s Vicente LLP:
The Drug Enforcement Administration is scheduled to hold a historic hearing beginning Monday, June 29, 2026, which could significantly alter the regulatory framework for adult-use marijuana nationwide.
Read our full summary for a closer look at the DEA hearing process and timeline for a ruling, the role international treaties play in support of rescheduling and what a favorable outcome would look like for 280E, interstate commerce and the hemp industry.
Here are the top five things to know about the upcoming DEA hearing:
1. The June 29 Hearing Could Reclassify All Marijuana to Schedule III
At the center of the proceeding is the DEA’s May 2024 Notice of Proposed Rulemaking, which proposed moving all botanical marijuana, including adult-use marijuana, from Schedule I to Schedule III.
Chief Administrative Law Judge Derek C. Julius will formally evaluate the scientific data and determine whether the marijuana plant satisfies the statutory criteria for Schedule III, including having accepted medical use and a lower potential for abuse relative to substances in Schedule I or II.
To get ALJ to recommend against rescheduling, opponents would have to introduce enough contrary scientific evidence against the Government’s eight-point checklist to prevent the Government from successfully proving the three final Schedule III requirements.
2. Hearing Schedule and Timeline
The hearing begins June 29, 2026, at 9:00 a.m. ET at the DEA Hearing Facility in Arlington, Virginia, expected to conclude no later than July 15, 2026.
At the conclusion of the hearing:
- Designated Parties will submit formal briefs summarizing their arguments and evidence.
- Following a review of the evidence and briefs, the ALJ will issue a recommendation on whether the remaining marijuana plant parts qualify for Schedule III.
- DEA Administrator will evaluate the recommendation along with public comments and FDA’s scientific and medical assessment.
If the DEA meets its burden of proof and the process proceeds efficiently, we could see a Final Rule published in the next year.
3. Interested Persons and Participants at the Hearing
Following an analysis of applications, the DEA Administrator officially certified a final, closed list of seven formally designated “Interested Parties” composed of prohibitionist organizations, individuals and state entities that have historically opposed further rescheduling: Smart Approaches to Marijuana (SAM), DUID Victim Voices, the National Drug & Alcohol Screening Association, the Tennessee Bureau of Investigation, two individual medical professionals Kenneth Finn, M.D., and Phillip A. Drum, PharmD, and the States of Nebraska, Idaho, Indiana and Louisiana.
4. Treaties Matter: International Drug Treaties and Adult-Use Rescheduling
The United States is bound by the 1961 Single Convention on Narcotic Drugs, which requires signatory nations to limit marijuana to medical and scientific purposes.
Since the Single Convention explicitly permits medical use, it offered a fast path to Schedule III for medical marijuana. Opponents are expected to argue the Single Convention prohibits moving adult-use cannabis out of Schedule I or II at all.
However, as detailed in the Vicente LLP Treaty Memorandum, proponents possess powerful legal defenses to justify moving all cannabis to Schedule III:
- The federal government cannot constitutionally force states to dismantle their existing legal adult-use markets or compel state police forces to enforce federal cannabis prohibition.
- Countries like Canada and Uruguay have already successfully relied on this exact harm-reduction argument, demonstrating that regulated markets are superior to prohibition in protecting public health. DEA can rely on these same constitutional and public health grounds to move adult-use cannabis to Schedule III under the treaties.
5. What a Favorable or Unfavorable Ruling Would Mean for Cannabis Businesses
280E Tax Relief and Compliance
A favorable outcome would provide relief from the IRS Section 280E tax penalty for adult-use operators and dual-licensees, which has long barred cannabis businesses from deducting ordinary business expenses. Rescheduling would also eliminate the compliance burden faced by businesses operating in both medical and adult-use markets.
A negative or partial recommendation would almost certainly be appealed, extending the timeline for resolution. Under this scenario, medical cannabis would continue moving forward under a fundamentally different federal regime with Schedule III protections and 280E tax relief, while adult-use operators and intoxicating hemp products remain in Schedule I.
State Programs and Interstate Commerce
In a historic show of deference to state operators, the DEA’s Final Order officially accepts state-authorized medical marijuana certifications provided they meet certain minimum criteria. DEA allows registrants to rely heavily on existing state-law requirements; however, operators must comply with certain federal requirements.
The Final Order does not explicitly authorize interstate commerce because the DEA’s expedited registration pathway strictly limits a federal registrant’s activities to the scope of their state license. Any state-level ban on import or export effectively blocks interstate commerce for that operator.
Hemp and Intoxicating Products
If the ALJ successfully recommends moving all botanical marijuana to Schedule III, its impact on intoxicating hemp products would depend entirely on how they are manufactured. Under DOJ’s Final Order, synthetically derived THCs such as Delta-10 or chemically converted Delta-8 are not reached and remain in Schedule I.
Taking effect November 2026, naturally derived hemp products that exceed the new federal THC threshold of 0.4mg of total THC per container will revert to the statutory definition of marijuana. If all botanical marijuana is rescheduled, these naturally derived products would indeed land in Schedule III rather than Schedule I.
The Road to True Legalization
Combined with the elimination of Section 280E tax liability and a DEA registration framework that legitimizes state medical programs, Schedule III validates cannabis as medicine. To deschedule cannabis entirely, authorize botanical products in traditional general commerce, resolve the underlying FDCA barriers, and achieve true nationwide legalization, an act of Congress remains necessary. Rescheduling, however, is widely expected to catalyze exactly that.
With Schedule III as a foundation, Congress is now positioned to act on a range of proposals that had previously stalled under Schedule I’s political and legal weight. Rescheduling does not guarantee passage of any of these, but it removes the single largest political, cultural and legal obstacle that has blocked congressional action for decades and signals that the federal government’s posture toward cannabis has fundamentally shifted.
Vicente LLP is actively monitoring the June 29 DEA hearing and broader federal cannabis rescheduling developments to track how they unfold and what they mean for the cannabis industry. Contact us with general questions or guidance on how federal rescheduling affects your business or cannabis program.
About Vicente LLP
Vicente LLP is the premier cannabis, hemp and psychedelics law firm. Since 2022, Vicente lawyers have actively championed the rescheduling effort under both the Biden and Trump administrations. Their efforts included gathering and analyzing pertinent evidence and safety data to support moving to Schedule III, representing a petitioner at the DEA’s administrative hearing, and managing thousands of expert public comments during the submission phase.
The firm co-authored the U.S. International Treaties Obligations and Marijuana Rescheduling white paper with Porter Wright, which provided the precise legal blueprint the DOJ used to bypass administrative gridlock and reschedule medical cannabis via treaty-obligation authority.
Media Inquiries
Partner Shawn Hauser and counsel Neil M. Willner are available to provide commentary regarding the hearing and the implications for cannabis businesses, researchers and policymakers. To request an interview, contact:
Shawn Hauser, s.hauser@vicentellp.com, 303-995-0958; Neil Willner, n.willner@vicentellp.com, 917-775-0392
The content and links provided on this page are for informational purposes only and not for the purpose of providing legal or tax advice. Viewing this page does not establish an attorney-client relationship. You should consult with a qualified legal professional for advice regarding any particular issue or problem. The contents of this page may be considered attorney advertising under certain rules of professional conduct.
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