Casey Roberts, ACSR, AFIS, CIC, PLIC, CAIP
Principal and founder of Laurus Insurance Consulting, specializing in continuing education, sales coaching, sales management, and expert witness work. With 34 years in retail insurance and over 25 years of CE teaching, he brings deep industry expertise. He holds the CIC, ACSR, and AFIS designations and has served in leadership roles with the IIABCal, the AFIS board, his state’s agribusiness insurance committee, and the California Department of Insurance’s Curriculum Board.
Earlier this year, headlines suggested that federal regulators had fundamentally changed the legal status of cannabis. While many reports focused on the move to reclassify cannabis under the Controlled Substances Act, the reality is more complicated than a simple shift from Schedule I to Schedule III.
For insurance professionals, risk managers, and cannabis-related businesses, the distinction matters. Understanding what changed, what did not, and the possible impact on the industry is critical as the regulatory landscape develops
What Happened?
For decades, cannabis was classified as a Schedule I controlled substance under the Controlled Substances Act, placing it within the same category as drugs considered to have a high potential for abuse and no accepted medical use under federal law. These drugs include LSD, heroin, peyote (Mescaline), Ecstasy, and Methaqualone (Quaaludes).
In December 2025, President Trump signed an executive order directing the Attorney General to pursue the rescheduling of medical marijuana from Schedule I to Schedule III. The Department of Justice (DOJ) and Drug Enforcement Administration (DEA) acted on that directive in April 2026, issuing:
“an order immediately placing both FDA-approved products containing marijuana and marijuana products regulated by a state medical marijuana license in Schedule III of the Controlled Substances Act, as well as the initiation of an expedited administrative hearing process to consider the broader rescheduling of marijuana from Schedule I to Schedule III. The new hearing, beginning June 29, 2026, will provide a timely and legally compliant pathway to evaluate broader changes to marijuana’s status under federal law.
Examples of other Schedule III drugs include Anabolic Steroids, Buprenorphine, Ketamine, and Tylenol with Codeine. These drugs are legally available with a prescription. In comparison, federal law prohibits prescribing a Schedule I drug.
What Happened?
One of the biggest misconceptions surrounding the announcement was that all cannabis is categorized in Schedule III. In reality, the change primarily affected portions of the medical cannabis market. Recreational cannabis remains subject to federal restrictions associated with Schedule I status.
As a result, cannabis businesses continue to operate within a complex patchwork of federal and state regulations. While the change represents a significant shift in federal policy, it does not eliminate the legal and regulatory uncertainty that has long surrounded the industry.
Why Should Insurance Professionals Care?
Federal classification can influence underwriting decisions, compliance requirements, access to financial services, and the availability of insurance products for cannabis-related businesses.
Keeping informed about regulatory developments is essential to understanding evolving risks and identifying opportunities in the cannabis marketplace.
What's Next?
The rescheduling effort has already sparked additional legislative activity. Senators Kevin Cramer and Ruben Gallego introduced the CLAIM Act (Clarifying Law Around Insurance of Marijuana), legislation intended to provide greater definition and a safe harbor for insurers serving the cannabis industry.
Whether by future regulatory changes or new federal legislation, the cannabis sector remains a fast-evolving marketplace.
Join the Conversation
Questions remain about how federal scheduling changes, emerging legislation, and evolving regulations will affect insurance markets and cannabis-related businesses. Join us for Cannabis, An Evolving Topic – It’s Not Just A Drug, a Ruble MEGA Seminar on August 28 to hear specialist perspectives, explore the insurance implications, and better understand what may await this changing industry.
