Duane Boise CEO MMJ International Holdings noted Matthew Strait's public warning raises serious questions about whether state medical marijuana operators will receive DEA federal registrations before litigation challenging the government's marijuana rescheduling order is resolved.
WASHINGTON, DC / ACCESS Newswire / October 13, 2026 / A public warning from a former senior Drug Enforcement Administration official has introduced a potentially consequential question into the federal marijuana rescheduling debate: Should the DEA issue Schedule III medical marijuana registrations while the legality of the underlying rescheduling order remains under review by a federal appeals court?
Matthew John Strait, former Deputy Assistant Administrator in the DEA's Diversion Control Division, addressed the issue during a recent cannabis regulatory panel hosted by Jason Adelstone of Harris Sliwoski LLP.
Discussing pending litigation before the U.S. Court of Appeals for the District of Columbia Circuit, Strait stated:
"I don't think it would be wise for DEA to issue any registrations."
The statement, highlighted in Marc Hauser's October 12 Cannabis Musings newsletter, raises a significant implementation concern that has received comparatively little attention amid expectations that state medical marijuana operators could soon receive federal Schedule III registrations.
The Risk DEA Cannot Ignore
Strait explained that issuing federal registrations before the appeals court determines whether the government's April 2026 rescheduling order was lawful could expose DEA to a complicated administrative problem.
If registrations are granted and the D.C. Circuit subsequently invalidates the marijuana rescheduling order, DEA could face formal proceedings to revoke registrations issued under a regulatory framework that no longer survives judicial review.
Strait characterized the potential revocation process as cumbersome and burdensome.
His comments are particularly significant because of his former policy leadership position overseeing DEA diversion-control matters, including the federal registration system.
Although Strait was expressing his own professional judgment rather than announcing agency policy, his assessment identifies a practical reason DEA might hesitate to issue registrations while litigation remains unresolved.
MMJ International Holdings Is Among the Federal Challengers
MMJ International Holdings and affiliated companies are participating in federal litigation challenging the legality of the government's decision to place qualifying state-licensed medical marijuana activity into Schedule III.
The consolidated D.C. Circuit proceedings challenge the statutory authority and procedures used to implement the April 2026 order.
On September 9, the appeals court denied a request to stay the order pending judicial review. That ruling left the rescheduling framework in effect but did not resolve the underlying legal challenges.
The distinction is critical.
A regulatory order may remain legally operative while its ultimate validity remains uncertain. Strait's comments suggest that this uncertainty could influence DEA's registration decisions even without a court-ordered suspension.
A Potential Delay Extending Into 2027
The parties have proposed an appellate briefing schedule extending into February 2027, with oral argument potentially occurring before the court's summer recess.
If DEA were to follow Strait's suggested approach, issuance of new registrations under the disputed state medical marijuana framework could be delayed well beyond the industry's anticipated implementation period.
Such a delay could have substantial consequences for state-licensed operators, investors, prospective federal registrants, and businesses planning around Schedule III implementation.
Importantly, no publicly verified DEA decision has established a blanket suspension of registrations pending litigation.
The significance of Strait's remarks lies in the possibility that the agency may independently determine that issuing registrations before judicial resolution creates unacceptable administrative and legal risk.
MMJ Questions the Regulatory Double Standard
MMJ International Holdings has spent years pursuing federally authorized pharmaceutical development of cannabinoid medicines, including investigational programs for Huntington's disease and multiple sclerosis.
Its affiliated cultivation company has separately pursued DEA bulk-manufacturer registration through the federal Controlled Substances Act process.
The company argues that federal regulators must apply the governing statutes consistently rather than establish preferential pathways for state-licensed marijuana operators.
Duane Boise, President and CEO of MMJ International Holdings, stated:
"The significance of Matthew Strait's warning should not be underestimated. A former senior DEA official is publicly questioning the wisdom of issuing federal Schedule III registrations before the courts determine whether the government had the legal authority to establish this framework in the first place.
"MMJ has consistently maintained that federal drug laws cannot be selectively administered. The question now is whether DEA will issue registrations that could later become legally vulnerable, or whether it will await a definitive judicial determination."
The Next Question for DEA
Strait's warning places a new focus on DEA Administrator Terrance Cole and the agency's implementation decisions.
Will DEA proceed with registrations while the underlying order faces judicial review, or will it avoid potentially difficult revocation proceedings by waiting for the D.C. Circuit?
For state medical marijuana businesses expecting a rapid transition to federally recognized Schedule III operations, that question may prove as consequential as the ultimate outcome of the litigation.
The April rescheduling order remains in effect. But whether DEA will issue registrations under that order before the courts rule remains an unresolved and increasingly important question.
Sources
- Harris Sliwoski regulatory panel recording - Matthew Strait discussion at approximately 55:00
- Cannabis Musings - October 12, 2026, by Marc Hauser
- D.C. Circuit consolidated marijuana rescheduling litigation, including Nos. 26-1106, 26-1130, and 26-1136.
About MMJ International Holdings
MMJ International Holdings is a biopharmaceutical company pursuing FDA-regulated development of cannabinoid-based medicines for serious neurological conditions. Its affiliated companies include MMJ BioPharma Cultivation and MMJ BioPharma Labs, which participate in federal controlled-substance regulatory and research activities.
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/former-senior-dea-official-warns-against-issuing-schedule-iii-marijua-1236341
