Pot Inc. Awaits Trump's Marijuana Reclassification, but DOJ Delays Linger

The US government is inching closer to loosening marijuana regulations, but the timeline remains uncertain.

Mar. 22, 2026 at 1:41am

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The US government is finally moving to reclassify marijuana from a Schedule 1 to a Schedule 3 drug, which would open up more opportunities for the $70 billion 'Pot Inc.' industry. However, the process is taking longer than expected due to the Justice Department's thorough review, leaving investors and businesses in limbo.

Why it matters

The reclassification of marijuana would have significant implications for the cannabis industry, allowing for more mainstream financing, banking, and business opportunities. However, the delays in the process are frustrating industry players who are eager to see the industry reach its full potential.

The details

The Justice Department, led by Attorney General Pam Bondi, is working to finalize the process of reclassifying marijuana from a Schedule 1 to a Schedule 3 drug, as ordered by President Trump in December 2025. This would put marijuana in the same category as codeine-laced Tylenol, allowing it to be prescribed by doctors. While many states have already decriminalized marijuana, the lack of federal approval has limited the industry's growth, with major banks and credit card companies refusing to work with cannabis businesses.

  • In December 2025, President Trump issued an executive order to reclassify marijuana.
  • The Justice Department is currently finalizing the new rule to be published in the Federal Register, but there is no set deadline.

The players

Pam Bondi

The US Attorney General who is leading the effort to reclassify marijuana.

Dr. Mehmet Oz

The administrator of the White House's Centers for Medicare and Medicaid Services, who wants to start a pilot program for medical marijuana.

Marc Cohodes

A former hedge-fund manager and investor in Glass House Brands, a major cannabis-cultivation business.

Doug Kass

A hedge-fund investor at Seabreeze Partners who is buying marijuana shares.

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What they’re saying

“This could happen relatively soon. It is a process and it's still being discussed internally.”

— Anonymous source, Person with firsthand knowledge of the DOJ's handling of the matter

“I see the timing as imminent, Dr. Oz made it clear that CBD for Medicare will be available April 15, and we are getting very close to that date.”

— Marc Cohodes, Former hedge-fund manager and investor in Glass House Brands

“The major pot companies all were able to refinance their debt in recent weeks meaning there is a belief that things are moving toward legalization.”

— Doug Kass, Hedge-fund investor at Seabreeze Partners

What’s next

The Justice Department is expected to publish the new final rule in the Federal Register soon, officially reclassifying marijuana from a Schedule 1 to a Schedule 3 drug.

The takeaway

The cannabis industry is eagerly awaiting the federal government's reclassification of marijuana, which could unlock new financing and business opportunities. However, the delays in the process highlight the ongoing political and regulatory challenges the industry faces in achieving full mainstream acceptance.