Despite remaining federally prohibited, almost half of the American population reside in a state where, for those over age 21, marijuana is legal for both medical and recreational use. The consistent wave of states legalizing the substance has garnered much attention, and so has the Department of Justice’s recent proposal to reschedule marijuana from Schedule I to Schedule III. The potential rescheduling has raised many eyebrows and perhaps even more questions, including questions related to its effect on banking.
What We Know
The Controlled Substances Act (CSA) categorizes substances into five schedules, gauging their potential for abuse, medical utility, and risk of harm. As of June 10, 2024, marijuana and derivatives with over a 0.03% THC concentration, maintain the dreaded “Schedule I” status. Substances in this category are deemed “armed and dangerous,” with essentially no redeeming qualities. As such, they face the most stringent controls, garner the longest prison sentences, and lack any recognized medical applications.
