The United States cannabis industry is poised for a possible shift. On August 11, 2025, Marijuana Moment reported that President Donald Trump’s administration is reviewing a proposal to reschedule marijuana and expects to reach a decision within the coming weeks.
IF the administration does decide to reclassify cannabis as a Schedule III drug, this shift could:
At Flourish, a cannabis seed-to-sale ERP software, we’re excited to see what comes next and continue to support licensed cannabis operators to thrive in a smarter, more connected future. This blog breaks down what the industry can expect with cannabis' rescheduling to Schedule III.
Cannabis is currently classified as a Schedule I drug in the CSA by the Drug Enforcement Agency (DEA). This places the plant alongside narcotics, I.E. heroin and LSD.
That category means it's considered to have no accepted medical use and a high potential for abuse. If the DEA reclassifies cannabis as a Schedule III controlled substance, it would join substances with recognized medical value and a much lower risk profile. The rescheduling could lead to benefits to licensed cannabis businesses around the country.
Currently, cannabis labeling, testing, and packaging rules shift from state to state — a maze that makes it tough to scale and keep costs in check. If cannabis moves to Schedule III, the FDA could step in with national standards, including:
For operators, that means less confusion and more consistency across markets.
Why it matters for Flourish customers
Flourish was built for cannabis compliance complexity. Today, we customize our platform for every state’s unique rules, which means lots of integrations and one-off builds.
Standardizing United States cannabis regulations would lead to:
Accelerated feature innovation: With compliance hurdles reduced, Flourish can dedicate more resources to building advanced forecasting, AI-driven insights, and customer-facing tools.
Stronger ecosystem partnerships: Standardization opens the door to deeper integrations with POS, eCommerce, and accounting platforms, enhancing customer operational efficiency.
Reduced onboarding complexity: Operators can get up and running faster with fewer compliance-specific customizations, lowering time-to-value.
Scalable operations for multi-state operators: Standardized data models make it easier for MSOs to manage consistent workflows across states, reducing inefficiencies.
Improved reporting and analytics: Consistent regulatory structures allow Flourish to deliver more accurate, comparative, and actionable business intelligence across markets.
Enhanced customer trust: By ensuring regulatory uniformity, customers can rely on Flourish for compliance confidence while focusing on growth.
Digital ads have always been tricky for cannabis companies. Even fully legal brands get rejected or blocked on platforms like Meta and Google. But with Schedule III, that could finally shift.
Hawke Media explains that reclassification could lead to:
Wider access to paid ads for licensed brands
More transparency in product messaging
Easier promotion of medical cannabis products
If you’ve run a cannabis brand account, you know the drill. Random takedowns. Limited reach. No warning. Social platforms treat cannabis content as risky by default. Schedule III could be the moment that starts to change.
According to Axios, cannabis rescheduling is officially on the table and that could push major platforms to rethink how they treat verified operators.
What we hope to see:
Fewer account bans
Green lights for educational content
Cannabis brands are treated like other wellness or pharmaceutical companies.
Rescheduling doesn’t just help plant-touching operators. It unlocks long-frozen potential across cannabis tech, finance, and infrastructure. Right now, many platforms and investors won’t work with cannabis businesses. Schedule III changes the equation.
As Reuters notes, we could soon see:
Better banking access
Stronger tech partnerships
More capital flowing into innovation
Elimination of 280E tax burden, creating additional revenue for plant-touching cannabis operators
What this means for Flourish
We’re ready to go deeper with our payment integrations for dispensaries using our cannabis POS, which have been off limits due to restrictions from credit card conglomerates and traditional online payment methods. Our API-first system is built to expand when the walls finally come down.
Reclassifying cannabis sends a message it’s not fringe, it’s real. The Wall Street Journal reports growing bipartisan support for the move, including from traditionally skeptical voices. That momentum helps the entire ecosystem.
Why this matters:
It’s easier to recruit great talent
Voters support local reform more confidently
Congress might finally move forward on key bills like the SAFER Banking Act
Here’s what this policy shift would mean for our operations and our clients:
| Today | With Schedule III |
|---|---|
| Limited integrations | Full access to banking and SaaS |
| Ad restrictions everywhere | Digital marketing finally opens |
| Compliance varies by state | Unified federal workflows |
| Stigma around operations | Legitimacy and business backing |
Flourish is already helping operators scale, stay compliant, and run leaner. With Schedule III possible, we can help them move even faster with fewer limitations.
Schedule III won’t solve all of the licensed cannabis industry's pain points overnight. But it possibly removes major roadblocks.
It clears the way for better banking, smarter regulation, and more trust. And when that happens, cannabis businesses won’t be allowed to operate less stringently. They’ll be able to compete more confidently, scale faster, and work smarter.
Flourish Software is built for exactly this kind of evolution. Whether it’s automating inventory tracking, simplifying compliance, or connecting your accounting software into a single workflow, we help cannabis businesses thrive in a shifting industry without missing a beat.
Let’s build the next era of cannabis together.
Ready to see how it all works?
👉 Schedule a personalized demo to see how Flourish can help you move with clarity, adapt to change, and scale for what’s next.