Across the Atlantic, the United States is once again at the centre of a global conversation on cannabis reform. In August 2025, President Donald Trump confirmed that his administration is actively considering reclassifying marijuana from a Schedule I controlled substance to Schedule III under the U.S. Controlled Substances Act. This would put cannabis alongside ketamine and certain anabolic steroids, signalling a major shift in federal perception. While such a change would not immediately legalise recreational use nationwide, it could remove some of the harshest restrictions that have existed for over half a century.
This process began under former President Joe Biden in 2023, when the Justice Department initiated a formal review after recommendations from the U.S. Department of Health and Human Services. The Drug Enforcement Administration (DEA) received almost 43,000 public comments on the proposal, ranging from medical researchers demanding easier access for studies to law enforcement groups voicing concerns about public safety. The review stalled with the change in administration, but Trump has stated he hopes to make a decision within weeks. His comments have been cautiously mixed, praising medical use but questioning broader consumption.
Understanding U.S. Cannabis Scheduling
Under U.S. law, Schedule I substances are deemed to have no accepted medical use and a high potential for abuse. This category currently includes heroin, LSD, and MDMA. By contrast, Schedule III drugs are recognised as having medical uses but still carry some abuse risk, such as ketamine and testosterone. Moving cannabis into Schedule III would formally acknowledge its medical applications at a federal level, something campaigners have argued is long overdue given decades of research and state-level medical programmes.
It is important to note that reclassification is not the same as legalisation. Recreational use would remain illegal in states that have not passed their own laws permitting it. However, the shift could have far-reaching consequences for taxation, research, and how cannabis businesses operate under state laws. It could also help align federal policy with the reality that 40 U.S. states and the District of Columbia already have medical cannabis programmes, and 24 have legalised adult recreational use.
The Medical and Research Impact
One of the biggest impacts of reclassification would be on medical research. Currently, cannabis researchers must navigate extremely strict DEA licensing rules, limiting the scope and speed of clinical studies. Schedule I status has made large-scale trials on chronic pain, epilepsy, PTSD, and cancer-related symptoms difficult to organise. Moving to Schedule III could simplify these requirements, encouraging universities, hospitals, and pharmaceutical companies to conduct more robust studies.
For patients, this could accelerate access to new cannabis-based medicines. In the U.S., products like Epidiolex (a CBD-based treatment for severe epilepsy) have already shown how targeted cannabis research can lead to regulated, effective medicines. In the UK, similar research could benefit from a comparable policy shift, allowing more precise dosing, strain-specific studies, and improved treatment options.
Taxation and Business Benefits
Currently, U.S. cannabis businesses face a unique tax burden due to Section 280E of the Internal Revenue Code, which prohibits companies dealing in Schedule I or II substances from deducting ordinary business expenses. This means licensed dispensaries in legal states often pay effective tax rates of 60–80%, far higher than most industries. Reclassification to Schedule III would remove this barrier, potentially saving the sector billions in annual tax payments and enabling reinvestment into growth, staffing, and infrastructure.
Banking access would remain a challenge, as federal anti-money-laundering rules still deter many banks from working with cannabis businesses. However, reclassification could strengthen arguments for passing complementary reforms like the SAFE Banking Act, which aims to provide legal protections for banks working with the cannabis industry. This could open the door for loans, credit facilities, and secure payment processing that the industry desperately needs.
Lessons from U.S. Cannabis History
To understand the significance of this possible change, it is worth looking at the history of U.S. cannabis policy. Cannabis was federally prohibited in 1937 under the Marihuana Tax Act, then placed in Schedule I in 1970 as part of the Controlled Substances Act. The “War on Drugs” era of the 1980s and 1990s saw penalties ramp up, with both the U.S. and UK adopting tougher laws and messaging. From the late 1990s onward, a wave of U.S. states began passing medical cannabis laws, leading to today’s patchwork of state-level legalisation.
Notably, every major shift in U.S. policy has had a ripple effect abroad. The UK’s decision to allow medical cannabis in 2018 came just six years after Colorado and Washington legalised recreational use, a change that dominated international headlines and made the idea of regulated markets more mainstream.
Could the UK Follow Suit?
Britain’s cannabis laws remain among the strictest in Europe, with cannabis classified as a Class B drug under the Misuse of Drugs Act 1971. Possession can result in up to five years in prison, and supply offences can carry a life sentence. Medical cannabis is technically legal, but NHS prescriptions are rare, and private prescriptions can be expensive. A significant U.S. reclassification could provide political cover for the UK to review its own scheduling, especially if medical research and economic benefits become harder to ignore.
Economically, the potential is huge. Projections from industry analysts suggest that a fully regulated UK cannabis market could be worth between £2 billion and £4 billion annually, creating tens of thousands of jobs. If the U.S. demonstrates that federal reclassification stimulates business growth without spiralling public health costs, British policymakers might be more willing to consider reforms.
Public Opinion on Both Sides of the Atlantic
Polling in the U.S. shows 68% of adults support full legalisation, up from just 36% in 2005. In the UK, recent YouGov polls show around 50–55% support for recreational legalisation, with higher backing for medical access. Support is strongest among younger voters eager to learn the genetics and enjoy the natural plant, but older demographics are gradually becoming more open to reform, particularly as medical benefits become better understood.
Data from the U.S. Substance Abuse and Mental Health Services Administration shows that 22.3% of Americans aged 12 and over used cannabis in 2024, up from 19% in 2021. The biggest growth is among adults aged 26 and older, suggesting that cannabis use is increasingly normalised among working-age populations, not just young adults.
The Bottom Line
Whether the UK follows America’s lead will depend on a mix of political will, public pressure, and international precedent. A U.S. move to Schedule III would be historic, marking the first time in over 50 years that the federal government has softened its classification of cannabis. While this would not automatically trigger legalisation, it would legitimise cannabis as a medical substance in the eyes of the world and could start a domino effect of policy changes elsewhere.
For the UK, the decision could act as a wake-up call. Reformers will argue that clinging to outdated classifications is no longer tenable, especially when other major economies are reaping the medical, scientific, and economic benefits of regulated cannabis markets. All this from a plant that’s grown in nature starting as a cannabis seed that could get you time in prison for growing at home.