The short answer

Cannabis remains a Schedule I controlled substance under federal law. That has not changed, even though roughly half the states now run legal adult-use markets. The DEA proposed moving marijuana to Schedule III in May 2024, but that rule is not final. Until it is, marijuana sits in the same federal category as heroin and LSD, and federal prohibition stands.

cannabis vs hemp federal law

What Schedule I actually means

The Controlled Substances Act lays out five schedules in 21 U.S.C. § 812. Schedule I is the tightest bucket, and three findings have to line up for a drug to land there: high potential for abuse, no currently accepted medical use in treatment in the United States, and no accepted safety for use under medical supervision.

Cannabis Federal Law Review: Comparison Review

That middle prong is where most of the argument lives. "Accepted medical use" is a legal test tied to FDA approval, not a statement about whether patients get relief. FDA has approved a few cannabis-related drugs, and each one landed in a lower schedule: dronabinol (Marinol, Syndros) in Schedule III, nabilone (Cesamet) in Schedule II, and Epidiolex, a CBD product, in Schedule V. Whole-plant flower has never cleared that bar.

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Hemp is a separate track

The 2018 Farm Bill removed hemp from the federal definition of marijuana. Hemp is defined as cannabis with no more than 0.3% delta-9 THC on a dry weight basis. That change took hemp out of the CSA entirely, which is why you can buy hemp-derived products federally while marijuana flower remains Schedule I. State law and FDA rules still apply to hemp, so the two categories are not interchangeable in practice.

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Where the rescheduling effort stands

  • August 2023: HHS, after an FDA and NIDA review, recommended that DEA move marijuana to Schedule III.
  • May 2024: DEA published a proposed rule in the Federal Register to do exactly that.
  • 2024: The public comment period drew tens of thousands of comments, far more than a typical drug scheduling docket.
  • 2025: Hearings before a DEA administrative law judge began, with supporters and opponents both putting testimony on the record.

Schedule III covers drugs with moderate to low physical dependence risk and a recognized medical use, such as ketamine, testosterone, and anabolic steroids. The proposed rule has not been finalized, and no firm date has been set for a decision.

What rescheduling would change, and what it would not

Would change: the 280E tax problem, which currently blocks state-licensed cannabis businesses from taking normal business deductions. Federal criminal penalties for unauthorized possession and distribution would drop. Research would get easier, since Schedule I registration is a genuine obstacle for studies.

Would not change: rescheduling is not legalization. State licenses would still govern retail sales. Buying flower without a prescription would still be a federal offense. FDA would still treat cannabis as an unapproved drug rather than a medicine you can pick up at a pharmacy counter.

Why legal state markets keep running

Congress has used appropriations riders since 2014 to bar the Justice Department from spending money to stop states from carrying out their own medical cannabis programs. The rider gets renewed with each funding law, and its reach follows that law's expiration date. It covers medical programs, not adult-use ones, and it does nothing to change the schedule itself. In practice, federal enforcement against state-licensed businesses has been limited, which is why dispensaries operate openly in legal states while the underlying federal status stays the same.

What this means if you shop at a licensed dispensary

Federal scheduling shapes taxes, banking, research, and prosecution priorities. It does not decide whether you can walk into a state-licensed shop in a legal state. Your state's rules, age limits, possession caps, and testing requirements do that. If you want to follow the federal side, watch the Federal Register docket, not headlines, since only a final published rule changes anything.