{"id":822,"date":"2025-12-23T13:32:35","date_gmt":"2025-12-23T13:32:35","guid":{"rendered":"http:\/\/sleepystork.com\/index.php\/2025\/12\/23\/what-will-trumps-marijuana-adjustment-mean-for-colorados-cannabis-industry-opinion\/"},"modified":"2025-12-23T13:32:35","modified_gmt":"2025-12-23T13:32:35","slug":"what-will-trumps-marijuana-adjustment-mean-for-colorados-cannabis-industry-opinion","status":"publish","type":"post","link":"http:\/\/sleepystork.com\/index.php\/2025\/12\/23\/what-will-trumps-marijuana-adjustment-mean-for-colorados-cannabis-industry-opinion\/","title":{"rendered":"What will Trump\u2019s marijuana adjustment mean for Colorado\u2019s cannabis industry? (Opinion)"},"content":{"rendered":"

Colorado was the first state to legalize adult-use cannabis, and for a time it felt like the Green Rush would never end.<\/p>\n

That era is long gone.<\/p>\n

Today, Colorado\u2019s cannabis market is one of the most mature — and most difficult \u2014 in the country. Prices have fallen, competition is fierce, margins are razor-thin and operators are doing everything they can just to stay afloat.<\/p>\n

That\u2019s why the federal government\u2019s move to reschedule cannabis from Schedule I<\/a> (where heroin sits) to Schedule III (alongside Tylenol with codeine) matters so much here. It doesn\u2019t fix everything. It doesn\u2019t magically revive sales or open the floodgates to Wall Street.<\/p>\n

For Colorado operators who have weathered years of contraction, it finally offers something we haven\u2019t had in a long time: relief.<\/p>\n

For most of the public, rescheduling sounds abstract: just another policy headline in a long line of cannabis news. For operators, the impact is concrete and immediate. Under Schedule I, cannabis businesses have been subject to a provision of the federal tax code known as 280E, which prevents licensed operators from deducting normal expenses like payroll, rent and utilities.<\/p>\n

While most U.S. businesses face an effective tax rate of roughly 25% to 30%, cannabis businesses often face rates closer to 75% or even 80%. Few are able to survive, let alone thrive with rates that high.<\/p>\n

For years, cannabis operators have effectively been taxed on revenue rather than profit. In a high-margin boom market, that burden was mostly bearable. In today\u2019s Colorado market, it\u2019s punishing.<\/p>\n

Rescheduling cannabis to Schedule III removes a significant barrier<\/a> that most industries never even worry about. If implemented as expected, operators will be able to deduct legitimate business expenses like any other company. That change alone will make cannabis operators more profitable overnight; not because sales are going to go through the roof, but because we\u2019re finally allowed to operate under the same tax rules as everyone else.<\/p>\n

This matters especially in Colorado because the market here has already grown up. We don\u2019t have inflated prices or unchecked demand. We have disciplined operators running lean businesses in a crowded landscape. Rescheduling won’t mean a windfall — it will simply offer some much-needed breathing room.<\/p>\n

That breathing room translates into real economic benefits. Money once routed directly to the IRS can now be reinvested in operations. It means higher wages, more stable jobs, better compliance systems, more automation and stronger local partnerships.<\/p>\n

\"Spherex
\n
Sarah Flynn, Special to The Denver Post<\/div>\n

Spherex sells what it calls a dablicator, a small syringe filled with marijuana distillate that can be infused into numerous dishes. One syringe of the Mango Kush distillate holds 765 mg of THC, so quite literally a drop will do. \u201cEdibles: Small bites for the Modern Cannabis Kitchen\u201d by Stephanie Hua and Coreen Carroll is an excellent resource for aspiring cannabis cooks. (Provided by Sarah Flynn)<\/figcaption><\/figure>\n

It means businesses can plan for the future instead of constantly triaging the present.<\/p>\n

Rescheduling also changes how cannabis is viewed by investors. While it doesn\u2019t legalize adult-use, or recreational cannabis at the federal level or guarantee access to major stock exchanges, it does lower perceived risk. Businesses that are now more profitable become more attractive to lenders and long-term investors. In a capital-starved industry where funding comes with high interest rates, that shift matters.<\/p>\n

It\u2019s important to be clear about what this moment is — and, just as importantly: what it isn\u2019t. Rescheduling doesn\u2019t open up interstate commerce. It doesn\u2019t eliminate the patchwork of state regulations. It doesn\u2019t immediately move cannabis into pharmacies or onto mainstream retail shelves.<\/p>\n

It doesn\u2019t mean cannabis is appropriately classified under federal law.<\/p>\n

Technically still federally illegal, Schedule III still lumps cannabis alongside substances that carry far greater risks of harm and addiction. Based on both research and common sense, cannabis should ultimately be regulated more like alcohol or tobacco, and removed entirely from the Controlled Substances Act. It should be governed by clear, consistent rules set by Congress. That work remains unfinished.<\/p>\n

But for Colorado\u2019s cannabis industry, rescheduling is a meaningful step forward. It acknowledges, at long last, that the federal government has been treating a legal, regulated industry like a criminal enterprise. It recognizes that the businesses providing jobs, paying state taxes and operating transparently deserve a fair shot.<\/p>\n

Colorado operators have endured the longest. We were first through the door. That meant we were first to feel the pressure when the market tightened.<\/p>\n