U.S. reclassifies cannabis as federal legalization efforts gain momentum in 2025

In 2025, the U.S. Drug Enforcement Administration reclassified cannabis from Schedule I to Schedule III, marking a significant shift toward federal legalization. This change recognizes cannabis's medical uses and reduces its perceived potential for abuse. The reclassification allows for increased research on cannabis's medical benefits and improves access to banking services for cannabis businesses. Companies can now take tax deductions, which were previously unavailable due to federal restrictions. While cannabis remains illegal federally, over 30 states have legalized it. The reclassification may help align state and federal laws, paving the way for future legislation aimed at full legalization.