President Donald Trump has issued an executive order that could reshape the landscape of Colorado’s cannabis and CBD markets. The order, which aims to reschedule marijuana from a Schedule I to a Schedule III substance, has sparked a mix of optimism and caution among industry stakeholders. Colorado’s cannabis sector has faced declining dispensary sales for over five years, according to the state Department of Revenue, and many hope this move will provide much-needed relief.
The reclassification could unlock new financial opportunities for cannabis businesses. Chuck Smith, CEO of the cannabis trade group Colorado Leads, described the change as a “big step” towards alleviating the burdens imposed by current federal tax regulations that can reach up to 70 percent for cannabis businesses. He noted, “While rescheduling alone will not resolve all the challenges created by conflicting state and federal laws, it is an important development that is long overdue.”
Smith emphasized that state-legal cannabis businesses, which create jobs and pay taxes, deserve equitable treatment. He pointed out that while the reclassification addresses some financial issues, it does not sufficiently tackle the broader implications of criminal justice associated with cannabis prohibition.
The executive order directs Attorney General Pam Bondi to initiate the rulemaking process for this rescheduling, with the expectation that the Drug Enforcement Administration (DEA) will also align with the new classification. However, there remains uncertainty about the timeline and any potential opposition to this order.
Critics of the move express concern about the implications for youth safety. The advocacy group One Chance to Grow Up warned that lowering marijuana’s federal classification could signal to young people that marijuana is safe. They advocate for establishing potency caps and serving-size limits before any changes take effect.
In a related development, the executive order focuses significantly on CBD and full-spectrum hemp products. Many of these products could soon face restrictions from Congress, aiming to limit the sale of hemp-derived THC products online and at non-licensed retailers. The order indicates potential adjustments to these looming restrictions, emphasizing the need to maintain safety standards.
The Centers for Medicare & Medicaid Services is also pursuing an initiative to allow Medicare and Medicaid patients to receive approved CBD treatments under their coverage plans. This could lead to a significant shift in access for patients reliant on cannabinoid therapies, although some fear that this may benefit large pharmaceutical companies at the expense of smaller businesses.
Advocates, including those from the organization Realm of Caring, are optimistic about the executive order. They view it as an acknowledgment of the therapeutic potential of cannabis, which has been largely overlooked. Kalcheff-Korn, a representative from Realm of Caring, stated, “Today represents a significant milestone for our industry and our organization’s mission.” She expressed hope that this change would pave the way for clearer regulatory standards regarding manufacturing, testing, and consumer safety.
Already, companies like Charlotte’s Web, based in Louisville, Colorado, are preparing to capitalize on this new landscape. They have announced plans to offer an online marketplace for CBD products specifically tailored to senior oncology patients, expected to launch in early 2026. This initiative aims to provide science-backed CBD products with reimbursement options through Medicare and Medicaid.
As Colorado’s cannabis industry adapts to these developments, the broader implications of Trump’s executive order remain to be seen. Stakeholders are eager to understand how these changes will affect federal and state regulations and the potential for future reforms in cannabis policy.
