On Thursday, April 23, 2026, the Trump Administration reclassified medical marijuana to a lower classification schedule. Previously, marijuana had been classified as a Schedule I drug, similar to heroin; however, through this action, the Department of Justice (DOJ) has lowered the classification of medical marijuana to Schedule III, which includes such drugs as Tylenol with Codeine and appetite suppressants. “These actions will enable more targeted, rigorous research into marijuana’s safety and efficacy, expanding patients’ access to treatments and empowering doctors to make better-informed healthcare decisions,” the acting attorney general wrote. This action impacts the financial services industry in that it lowers the risk assessment for banks deciding whether to serve medical marijuana companies. Previously, some financial institutions refused to do business even with medical marijuana companies because all forms of marijuana were heavily restricted under federal law. With this move, the DOJ has placed marijuana under a less regulated classification. Now, more banks may start to view medical marijuana companies as similar to other heavily-regulated customers, such as money services businesses, casinos, card clubs and precious metal dealers — a manageable risk.
The DOJ action has no impact on recreational marijuana activities. Additionally, the rescheduling does not immediately legalize marijuana or affect the sentences of those currently incarcerated for possession or distribution of marijuana. It also does not affect financial institutions’ obligations to comply with BSA/AML requirements related to banking the marijuana community, such as the 2014 FinCEN guidance on marijuana banking. The DOJ and Drug Enforcement Administration (DEA) will hold a hearing on June 29, 2026 to consider reclassifying marijuana more broadly as a Schedule III drug.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.
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