Cannabis is listed as a Schedule I narcotic, but things could be about to change. If the plant is moved to Schedule II, medical patients everywhere will rejoice.

But what if the decision to reschedule cannabis in the United States backfires? There’s a chance it might.

If the Food and Drug Administration (FDA) gains full control over the industry, a lot of obstacles could cause problems not just for patients but also, cannabis business owners and investors.

Rescheduling cannabis could backfire in a big way

Just last month, Senate Minority Leader Chuck Schumer (D-NY) declared that he would inaugurate a bill to decriminalize cannabis completely at the federal level. This would essentially remove cannabis from the controlled substances list.

Lawmakers on Capitol Hill have a proposition that rivals Schumer’s – to reschedule cannabis in the United States.

Rescheduling the plant means that, although it would still be a regulated drug, cannabis would become legal for medicinal use.

The downside to this is that rescheduling cannabis in the United States may inflict suffering on medical cannabis patients. With FDA regulation, there would be restrictions and rules that could make life difficult for anyone who wants to get their hands on medicinal-grade weed.

FDA regulation could be bad news for the cannabis industry

If cannabis is rescheduled as a Schedule II drug, the FDA would be in control of, well, pretty much everything cannabis-related.

From the marketing of cannabis-based products to deciding what information is included on the packaging, the FDA will have their say before anyone else does.

What does this mean for patients?

Since the FDA would likely regulate the cultivation, processing, and distribution of medical cannabis, they may demand medical cannabis companies to conduct FDA-approved clinical studies that accurately demonstrate how the plant and its derivatives treat various ailments. This is sure to be incredibly time-consuming, not to mention costly.

Furthermore, it might mean that medical cannabis is eradicated from a whole host of conditions that patients may be using the drug for. In this case, medical cannabis could be restricted to those who necessitate it, until the FDA gives the go-ahead when clinical trials are finalized.

Oh, and there is one more thing that might deter investors.

If cannabis is rescheduled, companies that sell the green plant must abide by Section 280E of the U.S. tax code.

This tax rule has stretched over three decades and it prevents businesses that sell a Schedule I or II substance from taking normal corporate income tax deductions. 

On that note, cannabis remaining a Schedule I drug could benefit medical cannabis patients, investors, “cannapreneurs” and advocates more than it might if it is rescheduled.