KEY Newsletter – Fall 2025
Trump with the TRUTH on CBD
On Sunday September 28th, President Trump took to Truth Social to share a three-minute video advocating for greater access to hemp derived CBD, especially for older Americans and calling for Medicare to cover CBD products.
The video was produced by The Commonwealth Project, a pro-medical cannabis organization whose mission is to integrate cannabinoid-based therapies into senior healthcare. The group advocates for the use of cannabinoids to “reset” the endocannabinoid systems which they say declines as people age causing issues like pain, inflammation, sleep problems and cognitive decline.
The video posted by President Trump describes CBD as a “game changer” and that successfully integrating cannabis into the healthcare system could save $64.0B annually.
Cannabis advocates were quick to say this video is positive signaling for potential regulatory changes the Trump Administration discussed making, including rescheduling cannabis from a Schedule I to a Schedule III controlled substance. Many industry participants viewed the post as a continuation of messaging from the Trump administration about cannabis reform. The messaging has included a crackdown on illegal Chinese cultivations and imports of synthetic products as well as taking power away from Mexican cartels. The post rounds out the messaging with a clear medical focused message that cannabis does in fact have medical efficacy which aligns with the proposed switch to Schedule III.
Critics, however, were less enthusiastic about the video stating it lacked clear direction from a regulatory standpoint as it did not lay out precise legislative or regulatory steps.
The post triggered a strong market reaction with many cannabis and CBD stocks jumping significantly when markets opened on Monday the 29th.
Trump Talks Cannabis Reform
In an article published by the Wall Street Journal on August 11th, Trump was heard discussing potential reform at a fundraising dinner. On August 8th during a Whitehouse press conference, Trump was asked by a reporter about potential reform. Trump told the reporter the administration is working on it and should have an answer “in the coming weeks.”
Currently, cannabis is classified under Schedule I — the same category as heroin and LSD — which designates it as having no accepted medical use and a high potential for abuse.
The administration is reportedly exploring moving it to Schedule III, which includes drugs like ketamine and anabolic steroids that have recognized medical uses and lower abuse potential.
If cannabis is reclassified, it could have major implications for both medical research and the cannabis industry. Researchers would gain easier access for clinical studies, and cannabis companies could potentially deduct business expenses currently disallowed under federal tax code 280E.
Supporters argue the move would align federal policy with public opinion and modern science. Politically, the announcement comes amid shifting attitudes toward cannabis across party lines, signaling a significant moment in the evolution of U.S. drug policy.
Pushing for a Federal Regulatory Framework
Senator Thom Tillis (R-NC) has urged Congress to establish a federal regulatory framework for marijuana, rather than continuing to let state legalization exist in tension with federal prohibition. He argues that federal law and state cannabis rules currently conflict, which creates openings for illicit actors and raises public safety concerns. Tillis suggests a system where states could opt into regulation, with features like excise taxes and federal oversight to protect consumers, public health, and child safety.
He also contends that marijuana users should not automatically be barred from owning firearms – questioning why alcohol consumers don’t face the same restriction. While Tillis is not pledging to vote for full federal legalization, he believes prohibition has effectively been lost and that regulation is the realistic path forward. He has previously called for cannabis to be treated similarly to alcohol and tobacco under federal law.
Ultimately, Tillis sees a roll-out of a congressional “yes or no” structure that lets states participate under uniform safeguards, rather than leaving the current patchwork of conflicting laws in place.
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