INDIANAPOLIS — President Donald Trump on Thursday signed an executive order that would change the federal drug classification of marijuana. The order was signed as hemp products face a possible federal ban. That ban has potential consequences for shops like The Health Club in Indianapolis.
Under current federal law, marijuana is listed as a Schedule 1 drug. According to the Drug Enforcement Administration, that means it has no currently accepted medical use and carries a high potential for abuse. The order calls for changing marijuana to Schedule 3, a classification that would allow doctors to prescribe it and open the door for expanded medical research.
“If it's going to be a medicine that is actually excellent, but I don't know what it means for smaller business that are in this space already,” said Jack Babcock, founder and CEO of The Health Club.
Babcock, who opened The Health Club last year, sells hemp-derived THC-infused drinks and products. He hopes the executive action could influence the congressional ban included in a recent government funding bill.
“The ban is still on the table,” Babcock said. “You know we are doing a lot of effort, and we have a lot in motion right now to either extend that window. They gave us a 12-month window, so hopefully that gets pushed out to another 12-18 months.”
Justin Swanson, chair of the Cannabis Practice Group at Bose McKinney & Evans LLP, said while this week’s announcement gives the industry some momentum, the reclassification process will likely take time.
“There is still a long way to go for that to actually get implemented, and I am sure there will be litigation over this as well. So, not to be a total Debby downer, but there is a chance this doesn’t happen for a couple years,” Swanson said.
Attorneys general across the country are already weighing in, including Indiana Attorney General Todd Rokita, who issued a statement opposing the idea of reclassifying marijuana after the order was signed.
Those in the industry say they are hopeful the move could lead to a national regulatory framework.
“Give us some guard rails, give us a minimum consumer safety floor, let states regulate the rest as they see fit,” Swanson said.
“We are doing things safely, and you know, just let us have a seat at the table,” Babcock added.
The executive order also urges Congress to re-evaluate its stance on CBD and hemp products. If lawmakers fail to act, hemp products would be effectively banned at the end of next year.
