DEA Chief Judge Derek Julius paused the cannabis rescheduling case Tuesday afternoon, halting a decision that could reshape the industry.
What The Judge Ordered
The public hearing concluded in mid‑July, and Julius said a stay is warranted while he decides whether to reopen the record, giving the government until Oct. 13 to respond and allowing other parties to reply by the same deadline.
On Sept. 28, opponents DUID Victim Voices, Dr. Kenneth Finn and the National Drug and Alcohol Screening Association asked Julius to add a Sept. 23 Government Accountability Office report on drug‑scheduling procedures to the record and to permit additional briefing; Julius granted a stay pending his decision.
What Rescheduling Means
Rescheduling changes where marijuana sits under the federal Controlled Substances Act; it does not legalize the plant. Schedule I denotes high abuse potential and no accepted medical use, while Schedule III permits accepted medical use and lower abuse risk. Moving marijuana from Schedule I to Schedule III does not remove it from the list.
In April, the Justice Department reclassified two categories of marijuana to Schedule III: FDA‑approved products containing marijuana and cannabis cultivated or sold under a qualifying state medical license. The paused case concerns the broader plant, including adult‑use products.
The stay does not reject rescheduling or cancel the earlier medical‑marijuana rule; it simply delays a decision that investors had viewed as a near‑term catalyst.
How MSOS and TRLV Reacted
After‑hours trading saw the AdvisorShares Pure US Cannabis ETF (MSOS) dip up to about 8% following the judge’s action.
Trulieve Cannabis (TRLV), a major ETF holding, closed regular trading at $12.41, up 0.6%, then fell to roughly $11 in extended hours, a decline of about 9%.
Stocktwits sentiment remained bullish on both TRLV and MSOS, with users noting that broader rescheduling is now less likely and that any future move could still occur.
TRLV is up roughly 43% year‑to‑date, underscoring its volatility amid the legal uncertainty.
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