The untold truth? Rescheduling may not save the cannabis industry-it could divide it.
Past IRS 280E tax liabilities won't vanish-some companies owe hundreds of millions.
Interstate cannabis operators still remain barred from DEA licensing, regardless of tax changes.
Marijuana is still DEA regulated under the Controlled Substance Act and
Quota is still the 800 pound gorilla in the room.
WASHINGTON, DC / ACCESS Newswire / August 15, 2025 / President Donald Trump has signaled he is open to reclassifying marijuana under federal law, particularly for medical purposes, calling it a "very complicated subject" but acknowledging he's heard "good things" for pain and chronic disease.
If his administration follows through - especially with a move to separate recreational marijuana from FDA-regulated medical cannabis - it could trigger a seismic shift in the industry. For most cannabis companies, that shift may mean new compliance hurdles. But for MMJ International Holdings, it could open the fast lane to final DEA registration and the start of long-delayed clinical trials.
Why MMJ BioPharma Stands Apart
1. The "Medical Only" Fit
President Trump's comments reflect caution toward recreational use but an openness to true medical applications. MMJ 's entire business model is built for that environment:
FDA Orphan Drug Designations for Huntington's disease and Multiple Sclerosis.
Two active Investigational New Drug (IND) applications with the FDA.
A fully pharmaceutical pathway - no dispensaries, no state-level gray markets, no recreational overlap.
2. DEA Policy Advantage
Under current DEA policy, any applicant with ties to illegal state-to-state marijuana commerce will never receive a federal manufacturing registration. This policy instantly eliminates a large share of today's cannabis operators from the race if Trump orders stricter enforcement in parallel with rescheduling.
MMJ's record is clean - it has never engaged in state-licensed or illicit marijuana trade. That means it qualifies for DEA registration without the baggage that could block other companies.
3. Breaking the DEA Bottleneck
MMJ has waited more than seven years for DEA approval to cultivate cannabis for FDA clinical trials. With no Administrative Law Judge system currently functioning, and Terry Cole newly confirmed as DEA Administrator, a Trump directed policy change could result in immediate action on long-delayed, compliant applications like MMJ's.
4. MMJ Market Positioning
Most cannabis companies operate in a state-law gray zone, which leaves them exposed to enforcement and disqualifies them from federal registrations. MMJ's federally compliant approach means:
Legal protection under federal law once approved.
Eligibility for insurance reimbursement, national prescription networks, and pharmaceutical distribution channels.
5. First-Mover Timeline
MMJ is uniquely prepared to act fast:
Orphan Drug Designations in place.
INDs cleared with the FDA.
GMP-compliant manufacturing plans ready to execute.
If rescheduling happens and the DEA issues its registration, MMJ could plant its first federally approved cannabis crop within weeks - launching clinical trials far ahead of competitors.
Impact on the Broader Industry
Rescheduling to Schedule III would also have major tax implications by eliminating IRS Code 280E restrictions going forward. That means cannabis companies could deduct normal business expenses. But here's the catch:
Past 280E liabilities - in some cases amounting to hundreds of millions - won't automatically disappear.
The IRS may allow relief for the full year of the change, but retroactive forgiveness is unlikely without congressional action.
Companies engaged in illegal interstate commerce remain ineligible for DEA licensing regardless of tax changes.
In short, while rescheduling could provide tax breathing room for some, those outside the bounds of federal law will remain shut out of the legitimate pharmaceutical market.
Bottom Line
If President Trump follows through with rescheduling and reinforces the DEA's strict eligibility rules, MMJ BioPharma could become the flagship example of how cannabis can be developed as real medicine - safe, consistent, federally compliant, and backed by clinical science.
Where others will face disqualification, tax debt, or regulatory overhaul, MMJ will be ready to deliver exactly what Trump has said he's open to: medical cannabis for pain and chronic disease, regulated like any other prescription drug.
MMJ is represented by attorney Megan Sheehan.
CONTACT:
Madison Hisey
MHisey@mmjih.com
203-231-8583
SOURCE: MMJ International Holdings
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/the-untold-truth-about-president-trumps-marijuana-rescheduling-1061177
