The U.S. Department of Justice has officially moved to reclassify marijuana to a lower-risk category, marking a landmark shift in federal drug policy. The decision moves cannabis from Schedule I, which includes drugs like heroin, to Schedule III, alongside substances like ketamine and some anabolic steroids. This change is the most significant federal cannabis reform in decades.
The reclassification carries major financial implications for the cannabis industry. It will allow businesses to deduct operating expenses from their federal taxes, a practice currently forbidden that has heavily burdened cash flow. While the move does not legalize marijuana nationwide, it eases federal restrictions and is expected to significantly improve profitability for cannabis companies.
Market Impact: S&P 500 Futures were down 0.55%, Nasdaq Futures fell 0.52%, and Dow Futures declined 0.59%. Bitcoin saw a minimal gain of 0.08% since the last session close.