Former FDA Official Predicts DEA Will Reschedule Cannabis by Next Presidential Election

At a recent cannabis industry event, a former Food and Drug Administration (FDA) official expressed his expectation that the Drug Enforcement Administration (DEA) would reschedule marijuana by the upcoming presidential election. Howard Sklamberg, the former FDA deputy commissioner for global regulatory operations and compliance, was surprised at the rapid pace of change, stating, “Even when I was at FDA, we knew that important regulations you wanted to get done in an election year, you want to get done by the summer before.”

Sklamberg, now an attorney at Arnold and Porter, anticipates that DEA will likely follow the FDA’s recommendation to classify cannabis as a Schedule III substance under the Controlled Substances Act (CSA). This move is seen as an essential step in acknowledging marijuana’s medicinal value.

During the American Trade Association for Cannabis and Hemp’s (ATACH) Capital Markets Council webinar, other experts, including Andrew Kline, former policy advisor to then-Vice President Joe Biden and now at Perkins Coie law firm, echoed Sklamberg’s sentiments. They highlighted the significance of the potential rescheduling, noting its positive implications for the industry, particularly regarding tax burdens under the IRS code 280E.

Sklamberg emphasized that such a change would not dramatically increase the FDA’s enforcement role concerning state cannabis programs. He assured that fears of increased federal intervention in state-regulated cannabis markets were unfounded. Moreover, he noted recent comments from a senior State Department lawyer suggesting that international treaties would allow considerable flexibility in domestic cannabis policies. This could provide a pathway for DEA to implement the rescheduling without breaching international obligations.

The discussion at the webinar reflected an optimistic view of the future of cannabis regulation, especially considering the changing attitudes of government agencies and the potential for significant tax and business benefits for the industry. With a growing bipartisan acknowledgment of the need for cannabis reform, the industry eagerly anticipates the DEA’s decision, which could pave the way for further federal-level cannabis legalization efforts.