Joe Biden has directed a formal review of cannabis's federal classification, a decision with potentially sweeping consequences for the industry.
The president also issued pardons to thousands of Americans convicted of simple cannabis possession, the clearest sign yet that his administration is adopting a more permissive stance on the drug.
Biden announced in a statement that he had directed officials to "review expeditiously how marijuana is scheduled under the federal law".
Under the current US regulatory framework, cannabis is grouped with heroin and LSD — a point Biden highlighted when announcing the review.
"Federal law currently classifies marijuana in Schedule 1 in the Controlled Substances Act, the classification meant for the most dangerous substances," he said. "This is the same schedule as for heroin and LSD and even higher than the classification of fentanyl and methamphetamine – the drugs that are driving our overdose epidemic."
Alongside the scheduling review, Biden granted pardons to an estimated 6,500 people convicted on federal charges of "simple possession", and called on state governors to follow suit.
"Just as no-one should be in a federal prison solely due to the possession of marijuana, no-one should be in a local jail or state prison for that reason, either," he said.
The White House subsequently confirmed that nobody is currently serving federal prison time for "simple possession", though Biden said the pardons would still ease access to employment, housing, and education for those affected.
The announcements came roughly a month before the mid-term elections. Even as he signalled openness to reform, Biden made clear that as federal and state rules evolve, "important limitations on trafficking, marketing and under-age sales should stay in place".
Bod Australia, a US distributor of CBD products, welcomed the announcement.
Chief executive Jo Patterson said a reclassification of cannabis could open up new opportunities across the Pacific.
"There may be an opportunity to communicate with customers about the benefits," she said. "If it's reclassified at a federal level it will also be less complex from a banking perspective.
"The classification has also stopped big brands getting involved in a big way."
Creso Pharma chief executive and managing director William Lay said President Biden's announcement "marks a major step towards the potential for legalisation in the US".
"While decriminalisation at a federal level may take some time, Creso Pharma has been building a very strong foundation to capitalise on the potential US market," he said.
"We plan to leverage our existing business divisions in Sierra Sage Herbs and Mernova to capitalise on the opportunity and are actively assessing a number of M&A opportunities in the country to cement a broader footprint.
"Further, we anticipate that any positive legislative change will provide the catalyst for major US institutions to increase exposure to the sector, potentially underpinning our NASDAQ dual listing."
"I look forward to providing ongoing updates as Creso Pharma continues to push towards a US recreational cannabis market entry."
