Marijuana stocks surged after the U.S. Department of Justice reclassified cannabis to a lower-risk category, easing restrictions in a major policy shift.
BNN Bloomberg spoke with Pablo Zuanic, managing partner at Zuanic & Associates, about the implications for cannabis companies, investors and the broader industry.
Key Takeaways
- The U.S. has moved medical marijuana from Schedule 1 to Schedule 3, marking a major shift in federal drug policy.
- The change reduces tax burdens by allowing companies to deduct operating expenses, improving cash flow.
- Cannabis remains federally illegal, and interstate trade and exports are still restricted.
- Expanded research and federal registration for operators are expected to support industry development.
- The move is seen as a step toward broader reform, but full legalization would require further legislative action.
Read the full transcript below:
ROGER: Marijuana and cannabis stocks are in focus today after the U.S. Department of Justice said it is reclassifying FDA-approved and state-licensed cannabis as a less dangerous drug. The move shifts marijuana from Schedule 1 to Schedule 3, easing long-standing restrictions but stopping short of full federal legalization.
Joining us now to break this all down is Pablo Zuanic, managing partner at Zuanic & Associates. Pablo, thank you very much for joining us today.
PABLO: My pleasure. Thank you.
ROGER: Where do we stand now with the move from Schedule 1 to Schedule 3?
PABLO: This is a big deal. We have to remember marijuana was put in Schedule 1 back in 1970 when the Controlled Substances Act was passed, meaning no medical use and a high potential for abuse — essentially illegal. Today, 56 years later, there is a final order issued by the DOJ that classifies medical marijuana as Schedule 3, with immediate effect.
That has a number of advantages. The most talked about is that you can do research on it at the federal and state levels and advance medical use. That’s number one.
Number two, there will be a process for medical operators to register at the federal level with the DEA, which we think will have quite a few benefits from a federal perspective.
And number three, there is a U.S. tax rule that forces companies dealing in Schedule 1 and Schedule 2 drugs to pay income tax on gross profits. By moving to Schedule 3, they will be able to pay on profit before tax, essentially deducting SG&A and other operating expenses. That is very significant to cash flow and also to their credit standing. So it is a boost for the industry overall.
What I would highlight is two things. One, stocks are down today about eight per cent, but over the last week they are up about 30 per cent. The market is correct — this is significant, and stocks are right to be up over that period.
The second point is that there is going to be a process to reschedule all marijuana. Right now it is medical marijuana that has been rescheduled with immediate effect, and then there will be an administrative hearing to move all marijuana, including recreational, to Schedule 3. From our perspective, it is a big deal and very positive for patients and for the industry.
ROGER: With that reclassification for recreational as well, would it essentially put the U.S. in the same position as Canada, where you can go to a store and buy it legally?
PABLO: Not exactly. First of all, marijuana remains federally illegal in the U.S. There is no interstate trade, but most states have already approved medical marijuana at the state level, and about half allow adult use. You can go to a dispensary in New York, New Jersey and many other states and buy for recreational use.
So in that sense, it is similar to Canada. It is different in that it is not federally legal. It is also different because, in Canada, companies can export, whereas in the U.S., based on the DOJ order, it remains federally illegal and companies would not be allowed to export.
If I step back, the bigger issue here is stigma, which does not get talked about enough. In my opinion, marijuana is safer than alcohol or tobacco, and there is still stigma around it. Regulators need to come to terms with what the FDA, HHS and DOJ are now saying — that it has medical use and lower potential for abuse.
Other legislation should follow. For example, federally chartered banks should be allowed to work with the industry, exchanges should be able to list plant-touching companies, and eventually the plant should be federally legalized.
This is a step-by-step process, but today is a significant day for the industry. For investors, there is volatility — some may “sell the news” — but the underlying trend is very positive.
ROGER: With the medical aspect and the tax changes, will that money go back into research, and how much could companies save?
PABLO: There are a couple of things. First, the cash flow savings for companies are significant. If we apply a multiple to those savings, it could be meaningful relative to market valuations.
At the federal level, there could be less tax revenue because companies will pay less tax, and we will see how that is addressed.
The industry is about $32 billion in sales today. Roughly 70 per cent is adult use, which has not yet been rescheduled, and about 30 per cent is medical, which is now rescheduled.
The key benefits are research — which is very important for patients — tax relief from the removal of 280E, and the ability for companies to register federally with the DEA. Interstate trade is still not allowed.
From a stock perspective, this remains a volatile sector, but today’s developments are very significant and positive.
ROGER: Pablo, thank you very much for joining us today.
PABLO: My pleasure. Thank you.
ROGER: That was Pablo Zuanic, managing partner at Zuanic & Associates.
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This BNN Bloomberg summary and transcript of the April 23, 2026 interview with Pablo Zuanic are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
