Cannabis Legalization Updates: What’s Changing in 2025

As of April 4, 2025, here are the latest developments in the cannabis industry:

U.S. Federal and State Legalization Efforts

• Federal Rescheduling: The Drug Enforcement Administration (DEA) is anticipated to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act. This move could significantly impact research opportunities and the cannabis industry’s regulatory landscape. 

• State Legalization Initiatives: Several states are progressing toward cannabis legalization:

  • New Hampshire: House Bill 186 aims to legalize and regulate cannabis for adults.

  • Tennessee: Multiple bills, including HB0703 and SB809, propose legalizing and regulating adult–use cannabis.

  • Texas: Legislation such as HB1208 seeks to legalize possession and distribution of cannabis. 

• Kentucky’s Medical Cannabis Program: Senate Bill 47, enacted in 2023, establishes a medical cannabis program effective January 1, 2025. The program outlines qualifying conditions and possession limits for patients.

Industry Challenges and Economic Impact

• Tariffs Affecting Cannabis Products: Recent U.S. tariffs on imports, including vape hardware and specialized glass from Asia, are expected to raise prices for cannabis consumers. Companies heavily reliant on these imports may need to adjust supply chains or absorb additional costs, potentially impacting profit margins and consumer prices. 

• Market Growth Projections: Despite challenges, the U.S. cannabis industry is projected to reach nearly $45 billion in revenue by 2025, reflecting ongoing expansion and consumer demand. 

Legal and Safety Concerns

• Court Rulings on Cannabis Oil: In Australia, Aaron Armstrong, known as “Mr. Hemp,” received a 12-month community corrections order for supplying cannabis oil. The court recognized the medicinal use of the oil and evolving legal perspectives, potentially setting a precedent for future cases. 

• Safety Incidents: A tragic house explosion in Newcastle, UK, caused by an illegal cannabis lab, resulted in two fatalities. This incident underscores the dangers associated with unregulated cannabis production and the importance of adhering to safety regulations. 

Enforcement Actions

• Operations in Australia: Police operations in Lithgow and Melbourne led to multiple arrests and the seizure of firearms, drugs, and cash, highlighting ongoing efforts to combat illegal cannabis activities and associated criminal behavior.

Opposition to Legalization

• Anti-Legalization Efforts: In the U.S., groups opposing cannabis legalization are intensifying campaigns to halt the expansion of legal cannabis markets, indicating continued societal and political debates surrounding cannabis policy. 

These updates reflect the dynamic nature of the cannabis industry, encompassing legislative changes, economic developments, legal considerations, and public safety concerns.