For Nevada’s legal cannabis industry, December 18 marked real progress. Not a finish line. But finally, a step in the right direction.
President Donald Trump signed an executive order directing the Attorney General to speed up the process of moving marijuana from Schedule I to Schedule III under federal law.
That matters, especially here in Nevada, where cannabis has been legal for years but still treated like a federal crime when it comes to taxes, banking, and research.
Las Vegas-based Planet 13 Holdings, Inc., home to the nation’s largest dispensary just off the Strip, welcomed the move.
Company leaders called it a positive development for jobs, research, and long-term growth.
They’re right.
Why Schedule III Matters
Right now, cannabis is classified alongside heroin under Schedule I. That classification makes no sense to most Nevadans, especially since voters approved recreational marijuana back in 2016.
Moving cannabis to Schedule III does not legalize it nationwide. But it does ease some of the worst federal roadblocks.
Most notably, it could soften the impact of IRS Section 280E, which prevents state-legal cannabis businesses from deducting normal expenses like rent, payroll, and utilities.
In plain terms, Nevada dispensaries pay taxes as if they’re criminals, not small businesses. Rescheduling starts to fix that.
A state-mandated 2024 report from Nevada regulators found that reclassification would allow cannabis companies to deduct expenses “the same as any other company would.”
That alone could free up money for hiring, expansion, and higher wages.
Planet 13 also pointed to banking.
Because cannabis is still illegal under federal law, many businesses are forced to operate in cash. That’s bad for public safety and bad for transparency.
Rescheduling helps lay the groundwork for future safe banking reforms.
As Planet 13 Co-CEO Bob Groesbeck put it, “Rescheduling cannabis isn’t the finish line. It’s the launchpad.”
That’s an honest assessment.
Nevada Still Regulates Cannabis
Nothing about Trump’s order changes how cannabis is sold or regulated in Nevada. The Nevada Cannabis Compliance Board made that clear after the announcement.
The board said it will continue regulating the industry from seed to sale, focusing on public health and safety.
That’s how federalism should work. States set the rules. Washington stops getting in the way.
This approach fits well with conservative principles. Limited government. State control. Clear rules instead of bureaucratic guesswork.
Critics Want More. They Always Do
Some critics say Trump’s move doesn’t go far enough. Others argue rescheduling won’t change access overnight.
That’s true. Even supporters admit the FDA would still need to approve specific medical uses.
But incremental progress beats decades of federal inaction. Conservatives understand that lasting reform often happens step by step, not through sweeping mandates.
Congress Needs to Finish the Job
Trump’s executive order opens the door. Congress still has to walk through it.
That means passing real safe banking legislation. It means fixing tax policy so legal Nevada businesses are treated like legal businesses.
And it means letting science, not politics, drive medical research.
For Nevada companies like Planet 13, this move signals momentum. For workers and consumers, it means safer operations and fewer cash-only risks.
And for taxpayers, it means a more honest system with less waste and fewer contradictions.
This wasn’t a cure-all. But it was leadership. Now it’s Congress’s turn to prove it can do more than talk.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. Digital technology was used in the research, writing, and production of this article. Please verify information and consult additional sources as needed.
