United States: The DEA is accelerating the integration of medical cannabis at the federal level

The Drug Enforcement Administration (DEA) The American company is continuing to integrate the medical marijuana under the federal regulatory framework. As of October 5, 2026, state-licensed producers, distributors, and testing laboratories can access new registration forms to conduct their business under the’Appendix III (Schedule III) of the Federal Act on Controlled Substances.

This procedure, which since April has been limited to medical cannabis dispensaries, follows the Trump administration’s decision to reclassify certain medical cannabis products, while recreational cannabis remains classified under Schedule I, the most restrictive category.

For companies in the sector, which have long grappled with the contradictions between state and federal laws, this development paves the way for a federal recognition, along with potential tax benefits.

The DEA Expands the Scope of Schedule III Registration

The new registration system uses DEA Form 225, which has been specifically adapted for businesses involved in the manufacture, distribution, or analysis of medical cannabis.

Previously, these operators could submit their applications using a general federal registration form. The updated procedure now includes specific options that reflect the activities of the various businesses within the medical cannabis supply chain.

Manufacturers may apply for authorization for the cultivation, processing, production, packaging, and labeling of cannabis-based products, as well as for certain transfers of such products. Distributors may apply for authorization to receive and transfer regulated products, while testing laboratories may apply for authorization to conduct analyses.

Applicants must specify whether their activities involve medical cannabis, recreational cannabis, or both. They must also provide information about their state licenses and indicate the substances they intend to handle.

To qualify for the new regulatory framework, companies must disclose information about their ownership structure, licensing history, and any prior legal or disciplinary proceedings. The DEA also reviews the background of staff members, including any convictions related to controlled substances.

Registration involves a non-refundable fee that varies depending on the applicant's activities.

Medical Cannabis: The End of Tax Rule 280E for Eligible Businesses

Beyond the administrative constraints, the Reclassification of medical cannabis to Schedule III could have major financial consequences for U.S. companies.

So far, the’Section 280E of the Federal Tax Code The U.S. law prevented companies that sold substances classified under Schedules I or II from deducting their ordinary operating expenses from their taxable income. This tax provision was particularly burdensome for the cannabis industry, even though cannabis is legal in many states.

Federal regulations adopted in April now stipulate that medical cannabis businesses covered by the reclassification are no longer subject to this restriction. As a result, they can claim tax deductions for routine expenses, including salaries, rent, and certain operating costs.

L’Internal Revenue Service (IRS) and the Treasury Department have yet to specify the details of how this new system will be implemented.

However, this trend is limited to eligible activities. The recreational cannabis, which remains classified under Annex I at the federal level, continues to be subject to existing tax restrictions. For companies operating in both markets, the distinction between medical and recreational activities could therefore become a significant accounting and regulatory issue. This is especially true given that a separate DEA proceeding is still examining the matter a broader reclassification of cannabis at federal level.