Trump’s Executive Order Impacts Colorado Cannabis and CBD Markets

President Donald Trump has issued an executive order that could transform Colorado’s cannabis and CBD markets. This development arrives amid ongoing struggles within the state’s cannabis sector, which has seen a decline in dispensary sales for over five years. While the executive order does not serve as a comprehensive solution, it may facilitate access to financial partnerships for cannabis business owners and potentially ease federal tax regulations.

Colorado-based company Charlotte’s Web has already announced plans to launch an online CBD marketplace specifically for senior citizens in response to the new order. Cannabis industry lawyers anticipate that a reclassification to Schedule III will relieve state-licensed marijuana businesses from onerous IRS tax rates that can reach as high as 70 percent. Chuck Smith, CEO of the cannabis trade group Colorado Leads, described the rescheduling as a “big step,” though he acknowledged it will not single-handedly resolve the complex issues arising from conflicting state and federal cannabis laws.

Smith emphasized the importance of fair treatment for state-legal cannabis businesses, stating, “This would be a big step in that direction. When it comes to addressing the wide range of criminal justice implications associated with prohibition, Schedule III does not go nearly far enough, but it will help pave the way for those important reforms.”

The executive order tasks Attorney General Pam Bondi with the responsibility to initiate the rulemaking process for the rescheduling of marijuana under the Controlled Substances Act. This could compel the Drug Enforcement Administration (DEA) to align with the new federal stance. Nonetheless, concerns remain among some Congressional members and advocacy groups regarding the implications of lowering marijuana’s classification.

Critics, including the organization One Chance to Grow Up, warn that such a move sends a troubling message to younger populations about the safety of modern marijuana products. They argue that the current products on the market are riskier than ever, and they advocate for stronger safeguards before any reclassification is implemented. “Federal scheduling does not eliminate the need for stronger product safeguards and safety measures,” the group stated.

Additionally, the executive order focuses significantly on CBD and full-spectrum hemp products, which may soon face restrictions from Congress. A proposed ban aims to limit hemp-derived THC products sold online and at unlicensed retailers, specifically targeting products containing more than 0.4 percent THC. The order suggests that updates to the definition of hemp-derived cannabinoid products will be made to ensure public health without undermining Congress’s intent to restrict potentially harmful products.

Alongside this executive order, the Centers for Medicare & Medicaid Services is pursuing a new initiative that would enable Medicare and Medicaid patients to access approved CBD treatments. While some advocates express concern that moving cannabis to Schedule III could lead to it being dominated by pharmaceutical companies, others see it as a breakthrough for greater access to cannabinoid therapies.

Kalcheff-Korn, a representative from Realm of Caring, stated, “The Trump administration’s decision to reschedule cannabis to Schedule III is an acknowledgment of the therapeutic potential of the plant that Realm of Caring and other organizations have worked so consistently to demonstrate.” She highlighted the potential for increased research support and the establishment of federal standards for manufacturing, testing, and consumer safety.

In light of the executive order, Charlotte’s Web has announced its intent to participate as a CBD provider for senior oncology patients under the new Medicare and Medicaid coverage programs. The company asserts that for the first time, seniors facing cancer will have access to scientifically-supported CBD products with reimbursement options through federal healthcare. This initiative is expected to launch via an online health care portal by early 2026.

As the cannabis industry in Colorado navigates these new developments, stakeholders remain cautiously optimistic. They anticipate that the changes could foster a more equitable landscape for cannabis businesses, while also addressing the broader implications of cannabis prohibition and access to medicinal treatments.