The US Department of Health and Human Services (HHS) has formally recommended that the Drug Enforcement Agency (DEA) move cannabis into a lower drug scheduling category.
In a letter sent to the DEA last week, the HHS called for cannabis to be moved from Schedule I — a category reserved for substances deemed to have no accepted medical use and a high abuse potential — to Schedule III, which covers substances considered to carry a moderate-to-low risk of physical and psychological dependence.
A DEA spokesperson confirmed the agency has launched a review following the HHS recommendation, with the DEA retaining final authority over any rescheduling decision.
Prohibition Partners CEO Stephen Murphy said a federal rescheduling of cannabis would carry considerable consequences for the industry.
He added: "The HHS recommendation further splits the path of cannabis between adult use and medical purposes. This helps advance access, but also opens the door for the existing healthcare and pharmaceutical industry to embrace patient demand."
US cannabis stocks surged following the announcement.