420 with CNW – Study Finds Possible Reason Why Some Marijuana Users Get Paranoid

Marijuana can produce very different psychological effects. For some people, it brings calm or euphoria. For others, especially after consuming large amounts, it can trigger paranoia, anxiety, or panic. Although research has linked regular marijuana consumption with an increased likelihood of anxiety, the biological reasons behind these reactions remain poorly understood.

A new study from Northwestern University researchers offers a possible explanation. Scientists found evidence in mice that cannabinoids can interfere with a group of brain cells involved in controlling responses to danger, potentially helping explain why some marijuana users experience severe anxiety.

The research focused on the central amygdala, a region of the brain involved in processing anxiety and fear. Researchers examined somatostatin neurons, a particular type of cell within the region, to determine how they respond when animals encounter a threatening situation while under the influence of a cannabinoid.

The team administered different amounts of CP55940 to mice, a compound that activates cannabinoid receptors in much the same way as THC, the principal psychoactive element in marijuana. The animals were then exposed to fox urine smell, an odor that naturally signals danger to mice.

As the concentration of the drug increased, the animals displayed stronger defensive behavior. Some attempted to escape, while others remained motionless in response to the threatening scent.

Researchers then monitored activity in the animals’ central amygdala using miniature microscopes attached to their heads. They discovered that somatostatin neurons became particularly active when cannabinoid exposure was combined with the stressful odor.

Further experiments pointed to a possible explanation. Cannabinoids appeared to reduce the discharge of GABA, a neurotransmitter that helps limit excessive activity in the brain. According to the researchers, weakening this inhibitory system may effectively remove some of the restraint normally placed on fear-related circuits.

After suppressing somatostatin neuron activity, the researchers found that the mice showed less avoidance of the threatening odor. The findings indicate that these brain cells may directly contribute to the stronger defensive reaction observed after cannabinoid exposure.

Neuroscientist Ozge Gunduz-Cinar described the results as strong evidence of a causal connection. However, she cautioned that the experiment examined one cell population in one brain area and relied on an inherent fear test.

Whether the same process occurs in people remains uncertain. Human studies involving controlled marijuana exposure and fear-related brain activity would raise significant ethical concerns. Still, the researchers say the findings could eventually help scientists develop better approaches for reducing severe anxiety associated with marijuana use.

As the scientific community works to understand why some marijuana users develop paranoia while others don’t, it helps to moderate cannabis use as licensed entities, such as Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB), usually caution their customers to do.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW – States Have Raked in Marijuana Taxes Totaling $15B Over Five Years

Data released by the U.S. Census Bureau shows that states collected approximately $3.55 billion in taxes tied to legal cannabis sales from July 2025 through June 2026.

The federal agency’s updated data show that state governments have generated over $15.8 billion in cannabis-related tax revenue since the bureau began recording the figures in 2021. The states reported approximately $987.5 million in collections during 2026’s second quarter.

California led the country during the April-to-June period, bringing in $161 million. Washington followed with $153.1 million, while Michigan collected $110.6 million. New York reported $76.8 million, Illinois recorded $71.8 million, and Colorado took in $55 million.

California has also generated the largest cumulative amount since the agency began tracking the figures, collecting over $3.3 billion. That accounts for roughly one-fifth of the nationwide total recorded during the period.

Washington ranks second at about $2.3 billion, while Colorado and Illinois rank third, each at approximately $1.4 billion. Michigan reported $1.3 billion, while Massachusetts, Arizona, and Oregon recorded $879.1 million, $831.2 million, and $811.6 million, respectively.

The federal dataset does not cover marijuana tax collections from before the third quarter of 2021. The agency noted that national receipts have generally risen over time, although collections declined in 2023. California’s decision to eliminate its cultivation tax that year was identified as the primary reason, as officials sought to lower retail prices, reduce costs, and limit illicit sales.

Receipts increased again afterward as additional states developed regulated recreational markets. Minnesota and Delaware were highlighted as jurisdictions with quickly expanding adult-use industries.

On a per-person basis, Montana and Washington reported the highest annual cannabis excise collections, exceeding $50 for every resident. The Census Bureau attributed those levels partly to retail tax rates of 37% in Washington and 20% in Montana.

The federal figures do not necessarily match state reports since the bureau uses its own definition of state government. Its calculations can include institutions, public agencies, commissions, and authorities in addition to traditional branches of government.

The bureau also cautioned that its quarterly figures do not represent sales from the same period in which they are published, as collections are generally reported after the underlying transactions occur.

Other recent studies have estimated even larger economic effects. Yale researchers projected that nationwide legalization could produce $57.9 billion in additional tax revenue over ten years. Meanwhile, industry analysts reported that U.S. cannabis sales revenue declined year over year in 2025, marking the first such drop since recreational markets began expanding nationally in 2014.

For established marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that don’t have operations in the U.S. but have a solid presence internationally, the data on the marijuana taxes going to state governments in the U.S. shows how the industry is helping to fund government activities and contribute to development.

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420 with CNW – DEA Judge Publishes Marijuana Rescheduling Hearing Transcripts

Over 2,500 pages of testimony from the U.S. Drug Enforcement Administration’s marijuana rescheduling proceedings are now available to the public following the release of transcripts from the 11-day hearing that ended July 15 in Virginia.

Derek C. Julius, the agency’s chief administrative law judge, issued the finalized records on August 25. His next step is to prepare a nonbinding decision on whether cannabis should remain in Schedule I or be transferred to Schedule III. The recommendation will then proceed to DEA Administrator Terry Cole for consideration.

Those involved in the hearing represented federal agencies, law enforcement groups, medical professionals, advocacy organizations, and families affected by drug-related issues.

The DEA called Dr. Dominic Chiapperino, a Food and Drug Administration official overseeing controlled-substance matters within the Center for Drug Evaluation and Research, as well as Dr. Corey Burchman, a New Hampshire physician with experience in pain treatment and anesthesiology.

The NDASA presented executive director Mary Jo McGuire and former DOT official Patrice Kelly. The Tennessee Bureau of Investigation was represented by Erica Stephens, an assistant special agent in charge of its Dangerous Drugs Task Force.

Smart Approaches to Marijuana brought testimony from Harvard psychobiologist Dr. Bertha Madras, who formerly worked with the Office of National Drug Control Policy, and Dr. Luli Akinfiresoye, a DEA pharmacologist.

Nebraska, Idaho, and Indiana jointly participated through psychiatrist Dr. Deepak D’Souza of Yale Medicine and Humboldt County Sheriff William Honsal in California. DUID Victim Voices was represented by its founder, Edward Wood.

Additional witnesses included Arizona pain specialist Dr. Kenneth Finn, Laura Stack, whose 19-year-old son Johnny died by suicide, California pharmacist Dr. Phillip A. Drum, and Colorado emergency physician Dr. Karen Randall.

The publication of the corrected transcripts begins the next stage of the administrative process. Under federal regulations, designated participants have 20 days to challenge portions of Julius’ proposed findings, legal conclusions, or recommendation.

Any objections must explain the grounds for the challenge and identify supporting evidence from the hearing record, including precise references to transcript pages and exhibits, as well as relevant legal authorities.

After reviewing any exceptions, Judge Julius will forward his recommendation and the administrative record to Administrator Cole. The administrator will ultimately determine whether to proceed with a change in marijuana’s federal scheduling. Whatever action the DEA takes, or chooses not to take, could face judicial scrutiny if an unsuccessful participant pursues an appeal in court.

Marijuana companies like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be following the rescheduling process until a final ruling is issued and any necessary changes are made to the federal Controlled Substances Act.

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420 with CNW – New York Approves Sale of Marijuana at Farmers’ Markets

New York cannabis businesses will soon have more opportunities to reach customers outside traditional storefronts after Governor Kathy Hochul signed legislation expanding where licensed operators can sell their products.

The law permits licensed marijuana microbusinesses and dispensaries to conduct sales at temporary locations, including farmers’ markets and other approved community gatherings. The change fulfills a proposal regulators first discussed in 2023 and gives smaller operators a new way to reach consumers.

Under New York’s microbusiness license structure, eligible companies can grow cannabis, process it, distribute it, and sell it directly to customers. The model was designed to let smaller businesses manage the full production chain without securing several separate licenses or relying on larger industry players.

Previously, microbusinesses were generally limited to permanent retail locations. For participation in state-approved cannabis showcase events, they also needed to work with a licensed retailer. The new law removes that barrier, allowing qualifying operators to sell their products at approved pop-up events.

Businesses seeking to participate must obtain the appropriate showcase authorization and follow state requirements covering event approval, customer age checks, and security measures.

Hochul said the expansion would give legal marijuana companies a fairer opportunity to compete while increasing access to regulated products.

For smaller cannabis companies, the opportunity comes as many continue to face financial pressure. Microbusinesses typically have fewer resources than larger retailers and can struggle to afford prime storefronts, advertising, and other costs associated with attracting customers.

According to Matthew Nicoletti, owner of Quality High, smaller companies often compete against businesses with substantially larger promotional budgets. He described community events as an important avenue for reaching customers and establishing stronger local connections.

Data presented to New York’s Cannabis Control Board this spring highlighted the difficulties facing the sector. A survey found that only one-fifth of vertically integrated microbusinesses reported turning a profit, while nearly two-thirds said they were operating at a loss.

Nicole Ricci, president of advocacy group New York Small Farma, told regulators in April that fewer than 10% of microbusiness license holders had succeeded in opening a storefront.

Ricci praised state officials and lawmakers for supporting direct sales and said the policy could help small growers build sustainable businesses while maintaining the seed-to-sale model envisioned when the license category was created.

New York’s approach remains unusual among major legal marijuana markets. In California, for instance, small-scale cultivators have spent years seeking greater access to direct-to-consumer sales, but comparable opportunities remain limited.

The wider cannabis industry, including firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), will therefore be pleased that New York is taking the lead in giving microbusinesses opportunities to leverage pop-ups as a way to reach more customers during outdoor events and other such gatherings.

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420 with CNW — Marijuana Alleviates Agitation in Nearly All Elderly Dementia Patients

A capsule containing a medically prepared cannabis oil has shown encouraging results in reducing agitation among older adults with dementia, offering fresh hope for families dealing with one of the condition’s most difficult symptoms.

Researchers reported that a formulated combination of purified THC and CBD, two compounds derived from cannabis, was linked to noticeable improvements in patients experiencing agitation during the later stages of dementia.

The findings came from the Life’s End Benefits of cannabidiol and tetrahydrocannabinol (LiBBY) trial. The clinical study involved 120 people diagnosed with Alzheimer’s disease or other forms of dementia. After 12 weeks of treatment, almost nine out of 10 participants experienced an overall improvement, according to the research team.

Results from the trial were presented at the Alzheimer’s Association International Conference by Dr. Jacobo Mintzer of the University of South Carolina and Brigid Reynolds, a clinical nurse practitioner and clinic coordinator at Georgetown University.

Dr. Mintzer described the outcome as highly encouraging, saying the response rate was unlike anything previously seen in dementia-related clinical research. He noted that studies involving new treatments rarely achieve positive results in close to 90% of participants.

Agitation is a common and distressing symptom in advanced dementia, often leading to restlessness, emotional discomfort, and aggression. These behaviors can place a heavy burden on both patients and those responsible for their daily care. Reynolds said finding safer and more effective ways to manage these symptoms remains an important goal for healthcare professionals.

Existing medications, including Haldol, morphine, and Valium, are sometimes prescribed to manage agitation. However, researchers said these drugs have shown limited benefit and may also produce unwanted side effects.

The study was carried out across 10 medical centers in the U.S., with researchers visiting participants in their homes. Those enrolled were receiving hospice care or met the criteria for hospice services. Participants were randomly assigned either to the THC and CBD oil suspension or an inactive placebo, with neither patients nor caregivers knowing which treatment was being administered.

Caregivers assessed agitation using a seven-point scale ranging from no episodes to several incidents every hour while also administering the medication. After two weeks, patients receiving the active treatment recorded an average reduction of 6.27 points in agitation scores. Those in the placebo group experienced a more gradual improvement that continued through the 12-week study period.

One participant’s daughter, Laura, said joining the trial gave her family optimism that better treatment options could become available in the future. Although she did not know whether her mother received the active medication or the placebo, she noticed meaningful changes during visits and said they were able to enjoy moments of genuine connection together.

Despite the promising findings, researchers stressed that the medication used in the trial should not be confused with commercially available cannabis products. Reynolds said the treatment was manufactured under strict medical standards and given with close clinical supervision.

She cautioned that products sold over the counter can differ significantly in quality, ingredients and dosage, meaning they may not produce the same effects and could even present health risks. The study has yet to undergo peer review or be published in a scientific journal.

Nevertheless, marijuana companies like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) will be pleased that this rigorous trial has confirmed yet another therapeutic benefit of cannabis compounds in a group of patients that has had limited treatment options for a long time.

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420 with CNW — Virginia Retailers, Farmers Worry as State and Federal Marijuana Laws Shift

Virginia’s recreational cannabis market is expected to launch next summer if lawmakers approve the final state budget, but uncertainty surrounding state and federal rules is already affecting businesses tied to the hemp industry.

Barbara Biddle, owner of District Hemp Botanicals in Manassas, recently informed her landlord that she will close one of her two retail locations. Her stores offer hemp-derived products such as lotions, bath products, gummies, and beverages containing CBD and THC, compounds naturally found in hemp and cannabis plants.

Both CBD and THC are often promoted for potential benefits that include easing pain, reducing stress, and helping with anxiety. THC-infused beverages have also gained popularity among consumers seeking an alternative to alcohol.

The industry now faces major changes on two fronts. Updated federal rules narrowing the definition of hemp are scheduled to take effect in November, while Virginia’s recreational marijuana market could begin operating next July.

Congress expanded the hemp market through the 2018 Farm Bill, allowing products containing no more than 0.3 percent THC. However, lawmakers have revised that approach, and many products currently available could become illegal once the new federal standards are enforced this fall.

Biddle said the changing legal landscape has made planning difficult. Although she explained that expecting a new baby also influenced her decision to reduce operations, ongoing regulatory uncertainty played a significant role.

The same concerns are affecting farmers. Graham Redfern, who grows hemp in Caroline County, said many of his crops could lose their legal status once the federal changes take effect. He argued that mature hemp naturally produces cannabinoids, making it difficult to build a sustainable hemp business under the proposed standards.

Virginia has already tightened oversight of hemp products following an increase in poison control calls involving children who mistakenly consumed edible products and adults who experienced stronger effects than expected. A 2023 law introduced stricter packaging rules, mandatory third-party laboratory testing, clearer labeling, and lower THC limits.

Biddle and Redfern disagree, saying responsible businesses have followed federal and state requirements for years. They believe recent policy changes favor larger corporate interests while placing small Virginia businesses at risk. Redfern noted that growers and retailers have repeatedly met with lawmakers and the governor seeking solutions but now fear many small operations may not survive without additional time before the new regulations take full effect.

The debate came as state leaders continued negotiating Virginia’s budget as the July 1 deadline approached, with disagreements over data center tax policy threatening to delay final approval.

Developments in Virginia regarding hemp and marijuana regulation will be closely tracked by various industry actors, such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), both within and outside the country.

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420 with CNW — Study Shows Marijuana Extracts Notably Improve Symptoms of Cancer Patients

A new clinical study indicates that cannabis-derived medicinal extracts may help reduce several symptoms associated with cancer, including difficulty sleeping and anxiety, though patient responses varied considerably depending on which cannabinoid profile worked best for each individual.

The study team evaluated oil-based formulations with different proportions of cannabidiol (CBD) and tetrahydrocannabinol (THC) using a randomized, placebo-controlled trial that was triple-blinded to reduce bias.

Overall results suggest that cannabis oil treatments produced meaningful relief in about half of participants, with improvements most often reported in sleep-related issues and closely connected symptoms. When outcomes were averaged across the study population, no single formulation consistently showed superior performance compared with the others.

Among the 89 participants who had complete Patient Global Impression of Change records, 56% experienced at least a 1.4-point improvement relative to placebo when using one or more active extracts. In subgroup analyses, response rates were recorded at 50% for pain, 47% for sleep difficulties, and 60% for anxiety. Around two-thirds of participants said they preferred an active cannabinoid product over placebo.

The study also found that a low-dose regimen combining 2.5 milligrams of THC and CBD taken three times per day was generally well tolerated. Even so, the researchers stressed that better outcomes are likely achieved when treatment is tailored rather than standardized across patients.

According to the authors, a universal recommendation is unlikely to fit the wide range of biological differences seen in patients. Variations in the endocannabinoid system may help explain why some individuals respond better to certain extracts than others.

The findings add to expanding scientific work exploring cannabis compounds in cancer care. Earlier reviews have suggested possible anti-tumor activity in specific cancers such as glioblastoma and breast tumors, along with evidence that cannabinoids may improve the effectiveness of chemotherapy.

CBD has also been highlighted in multiple analyses for its potential anti-cancer properties, anti-inflammatory effects, and possible role in slowing tumor growth and spread across cancers including lung, colorectal, ovarian, and prostate.

A 2025 study also examined existing clinical and laboratory data, suggesting cannabinoid use may enhance how standard chemotherapy drugs perform.

Separately, earlier research has reported that many cancer patients who use cannabis describe noticeable improvements in symptom severity and overall quality of life.

Researchers say further large-scale trials will be needed to determine optimal dosing strategies and long-term safety, particularly as interest in cannabinoid-based therapies continues to grow in oncology care settings worldwide.

These scientific findings confirming that marijuana products indeed confer medical benefits upon cancer patients are likely to be welcomed by industry firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) that sell medical marijuana products aimed at helping cancer patients manage their symptoms.

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420 with CNW — Survey Uncovers the Complex Impact of Marijuana on Sleep

Fresh findings from the American Academy of Sleep Medicine (AASM) highlight the complicated link between marijuana consumption and sleep quality, revealing a wide range of experiences among U.S. adults.

According to the survey, 33% of respondents said they sleep somewhat or considerably better when using marijuana. Meanwhile, 19% reported either no noticeable change in their sleep patterns or a negative effect. Specifically, 11% said cannabis made little difference, while 8% felt their sleep worsened after use. Nearly half of those surveyed, 47%, stated that they do not use cannabis at all.

Women were less likely to use cannabis, with 55% reporting no use compared with only 39% of men. Men were also more likely to associate marijuana with improved sleep, as 39% reported benefits versus 28% of women.

Adults between 25 and 44 years old were the group most likely to say marijuana helped them sleep better, with 45% reporting positive effects. Older individuals were generally less likely to use cannabis products.

Dr. Kannan Ramar, a former president of the AASM, noted that the growing legalization of marijuana across many states has increased interest in its health effects, including its influence in sleep. However, he emphasized that the relationship is far from straightforward.

Ramar explained that cannabis use may be linked to several health concerns, including excessive daytime drowsiness, reduced driving ability, dependence, and withdrawal symptoms that can interfere with normal sleep patterns.

Scientific research on cannabis and sleep has produced mixed conclusions. While a recent review of multiple studies found that cannabinoids were associated with better self-reported sleep quality, other research suggests that people who use cannabis daily over long periods may spend more time awake during the night when measured objectively.

A small pilot study offered another possible explanation for the conflicting findings. Researchers discovered that participants who expected cannabis to improve their sleep tended to overestimate both how quickly they fell asleep and the total amount of sleep they received when compared with objective measurements.

Recent analysis from the Centers for Disease Control and Prevention found that some Americans regularly rely on cannabis to address sleep problems. The agency reported that 3.7% of U.S. adults used cannabis products often in the last month to help them fall asleep or remain asleep.

Current AASM guidelines identify cognitive behavioral therapy for insomnia as the preferred treatment for chronic insomnia, while prescription medications may also be appropriate in some cases. The organization additionally recommends maintaining a consistent sleep schedule, limiting caffeine, alcohol, and nicotine in the evening, creating a quiet and comfortable bedroom environment, reducing screen use before bed, and practicing relaxation techniques such as meditation, journaling, or deep breathing.

As more studies are conducted to provide definitive findings about the role of marijuana on sleep quality, cannabis firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) remain firmly convinced that it will take years, if not decades, for the full health and wellness impacts of marijuana to be scientifically documented.

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420 with CNW — DOT Says Marijuana Rescheduling Doesn’t Change Drug Testing Requirements

Commercial drivers and other safety-sensitive transportation workers will remain subject to penalties if they use state-legal medical marijuana, according to updated guidance from the Department of Transportation (DOT).

The clarification, issued in a memorandum dated May 26, confirms that federal drug testing rules have not shifted, even after the Department of Justice moved to reclassify state-approved medical marijuana.

The memo stresses that cannabis obtained through state medical programs or other non-prescription channels cannot be considered a valid medical justification under federal testing standards. It points to 49 CFR § 40.137(a), which defines what qualifies as a legitimate medical explanation in workplace drug testing.

According to the guidance, only a substance that is legally prescribed in line with federal law can meet that threshold. Since marijuana remains unapproved by the FDA, it is excluded from that category even after the recent rescheduling.

The document further notes that while medical review officers may receive documentation such as state-issued medical marijuana cards or physician recommendations, it does not satisfy federal requirements for a legitimate medical explanation under existing rules.

This position aligns with earlier statements from federal transportation leadership. During a prior testimony before Congress, the then-Transportation Secretary noted that the reclassification of cannabis would not meaningfully affect workplace drug testing rules for regulated transportation employees.

He explained that federal regulations established in the late 1980s continue to require cannabis screening for safety-sensitive roles, regardless of how the drug is scheduled under federal law.

The federal testing framework covers roughly six million private-sector workers in transportation roles considered safety-sensitive. The standard urinalysis does not detect active intoxication but instead identifies a cannabis metabolite that can remain in the body long after use. This compound, known as carboxy-THC, may be detectable for weeks or even months, even though the psychoactive effects of cannabis typically last only a few hours.

Research published in Drug and Alcohol Dependence Reports earlier this year found no measurable difference in next-day cognitive performance between cannabis users and non-users.

Industry data shows that more than 139,000 truck drivers have tested positive for past marijuana exposure in recent years, a figure that exceeds combined positives for all other tested substances. Many of those drivers did not return to the industry afterward, contributing to ongoing labor shortages and supply chain pressures in freight transportation.

Critics of the policy argue that the system is outdated and not aligned with current science or state laws. According to an American Transportation Research Institute survey, 62% of motor carrier representatives believe federal drug testing regulations should be updated in response to the growing number of states legalizing cannabis use.

While the DOT introduced a rule in 2023 allowing commercial drivers to choose oral fluid testing as an alternative to urine testing, that option has not yet been implemented. Advocacy groups such as NORML continue to push for testing methods that measure impairment more directly, including performance-based tools like DRUID and AlertMeter, arguing they would provide a more accurate assessment of on-the-job safety risk.

Marijuana industry firms like Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will continue to hope that federal testing guidance evolves to be in line with the reality on the ground in which a large section of employees live in areas with legal marijuana in some capacity.

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420 with CNW — Experts Say Partial Marijuana Rescheduling is Causing Confusion

While the Trump administration has taken a partial step toward rescheduling marijuana, the move has left many in the industry uncertain about what comes next.

Acting AG Todd Blanche recently signed an order moving certain cannabis-related products out of the most restrictive federal category. Specifically, products sold through state-licensed medical cannabis programs, along with those approved by the FDA, will move from Schedule I to Schedule III.

Despite the shift, policy experts caution that the change is limited in scope. Cat Packer, who oversees drug markets and legal regulation at the Drug Policy Alliance, said it would be misleading to describe the decision as a broad reclassification of marijuana. Instead, she characterized it as a narrow adjustment affecting only select categories.

Packer pointed out that the reference to FDA-approved cannabis products applies only to potential future medications, not those already on the market. She also raised concerns that the order appears to assume how such products will be scheduled without a full scientific review of risks and benefits.

The administration has justified its approach by referencing the Single Convention on Narcotic Drugs, a 1961 international agreement that the U.S. and dozens of other countries signed. The treaty restricts the production of certain controlled substances, including marijuana, to limited quantities for medical and scientific use.

However, Packer noted that there is ongoing debate about whether U.S. policy already conflicts with that agreement, given the widespread legalization of cannabis at the state level.

Some industry leaders say the latest announcement may have added complexity rather than clarity. Others suggest that the timing could be politically motivated, pointing to upcoming elections and efforts to appeal to certain voter groups.

Even so, they acknowledged that any sign of movement at the federal level is notable. The changes are expected to have the most immediate impact on the medical cannabis sector, though details on implementation remain unclear.

One issue highlighted by industry participants is the legal distinction between medical and recreational cannabis, even when the products themselves are identical. In many dispensaries, the same product may be sold under both categories, despite differences in how the law treats each transaction.

Packer noted that the shift could signal federal recognition of medical cannabis as legitimate treatment, which may help patients and caregivers avoid criminal penalties. Still, she cautioned that without clear guidelines, protections may not fully materialize. Patients could continue to face challenges related to housing, employment, or other areas where cannabis use remains stigmatized.

There are also concerns about equity. Because only medical cannabis businesses will be eligible to register with federal authorities under the new framework, the policy may favor operators who entered the market early. Packer noted that many Latino and Black entrepreneurs are more heavily represented in the recreational sector, due in part to barriers that existed in earlier medical programs.

Blanche also announced that the DEA will hold a hearing on June 29 to further examine cannabis scheduling. Still, experts say a complete reclassification or full legalization remains uncertain. Even if additional changes occur, Packer emphasized that they may not align with public opinion, which has increasingly supported broader legalization in recent years.

Marijuana firms like Aurora Cannabis Corp. (NASDAQ: ACB) (TSX: ACB) and their U.S. partners will continue to monitor developments on the regulatory front to glean what impacts this may have on the industry.

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