U.S. DEA's Cannabis Rescheduling Hearing Faces Constitutional Challenge

The Drug Enforcement Administration opened a 60‑day window for state‑licensed medical marijuana operators to apply for DEA registration, positioning them for a potential Schedule III market. The agency has scheduled an expedited rescheduling hearing for June 29, 2026, that could shift marijuana from Schedule I to Schedule III and affect billions of dollars in the healthcare and cannabis sectors.

The U.S. Department of Justice has formally warned that the administrative‑law‑judge (ALJ) framework the DEA plans to use is unconstitutional under the separation‑of‑powers doctrine. Despite the DOJ’s stance, the hearing is set to proceed, and related challenges are pending before the D.C. Circuit, raising questions about the legality of the DEA’s rescheduling process and its broader implications for the industry.