How Federal Cannabis Law Is Changing in 2025: What to Expect
By Jeff Eckenrode
Quick Answer: In 2025, federal cannabis law may change through rescheduling cannabis to Schedule III and passing the SAFE Banking Act. Rescheduling would recognize medical use and offer tax relief, while SAFE Banking would give cannabis businesses access to banking. Full legalization isn’t here yet but major reforms are finally gaining momentum.
What’s Happening with Cannabis Laws in 2025?
For decades, cannabis has lived in legal limbo—legal in some states, banned by the federal government, and constantly caught in a tug-of-war between progress and prohibition. But in 2025, that might finally start to shift. From rescheduling to banking reform, the cannabis landscape is on the verge of real federal change.
So, what’s happening with cannabis law at the national level? And what can we expect in the months ahead?
Image credit: Tingey Injury Law Firm
Rescheduling Cannabis: From Schedule I to Schedule III?
One of the biggest stories in 2025 is the possible rescheduling of cannabis.
Right now, cannabis is classified as a Schedule I substance under the Controlled Substances Act—the same category as heroin and LSD. That means the federal government considers it to have no medical use and a high potential for abuse.
But that’s changing.
In 2024, the Department of Health and Human Services recommended that cannabis be moved to Schedule III, alongside drugs like Tylenol with codeine or ketamine. If finalized, this change could:
Recognize the medical value of cannabis
Open the door to federal research
Allow cannabis businesses to claim tax deductions under IRS Code 280E
Begin to reshape how cannabis is regulated at the national level
It wouldn’t make cannabis fully legal—but it’s a major step forward.
Image credit: Sasun Bughdaryan
The SAFE Banking Act: A Long-Awaited Breakthrough?
The cannabis industry has been largely locked out of traditional banking services. Most businesses are forced to operate in cash, and many can’t access loans, lines of credit, or even basic checking accounts. That’s where the SAFE Banking Act comes in.
This bill, which has been floating around Congress for years, would protect banks and financial institutions that work with legal cannabis companies. In 2025, support for SAFE Banking is gaining traction again—especially as more lawmakers recognize the risks of a cash-only cannabis market.
If passed, it could mean:
Safer operations for dispensaries and delivery drivers
Easier access to capital for small and minority-owned businesses
A step toward full economic legitimacy for the industry
Image credit: matthew6910
Federal Legalization for Cannabis: Still Out of Reach?
Despite progress, full federal legalization (where cannabis is removed from the Controlled Substances Act entirely) still seems unlikely in 2025.
The political landscape is divided, and while public support is strong, consensus in Congress hasn’t caught up yet.
That said, smaller reforms (like rescheduling and banking access) could lay the groundwork for broader change down the road.
Image credit: Greta Schölderle Möller
What It Means for You
If you’re a cannabis consumer or industry professional, here’s what to watch for:
Rescheduling could lead to more research, insurance coverage for medical patients, and better access to care
SAFE Banking could make dispensaries safer, transactions easier, and business growth more sustainable
Federal reforms may encourage more states to modernize their own laws
Just don’t expect everything to change overnight. These are slow-moving systems. However, they’re finally beginning to move.
Image credit: Erik Mclean
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