The Dentons Kentucky Cannabis group has been actively involved in speaking at webinars and industry events and providing resources on the recent rescheduling of medical cannabis. As part of our commitment to keeping license holders informed, we are sharing three key resources that address the practical implications of rescheduling for Kentucky medical cannabis operators.
Background
On April 23, 2026, the U.S. Department of Justice announced that medical cannabis products (those subject to a state medical marijuana license) and FDA-approved products containing marijuana were rescheduled to Schedule III. Rescheduling created a legalization pathway for state-licensed medical cannabis operators and triggered important new federal registration requirements and tax implications.
The Drug Enforcement Administration (DEA) established an expedited federal registration process for entities holding state medical marijuana licenses. The 60-day expedited filing window following the rule’s publication in the Federal Register on April 28, 2026, has now closed. Licensees that filed within the window are now awaiting their DEA registrations and may continue operating under their state licenses while their federal registrations are pending. Operators that did not file within the expedited window may be required to cease operations until obtaining a DEA registration. If your state licensed medical cannabis business has not yet applied for a DEA registration for your operation, please reach out to a member of the Dentons cannabis group for guidance.
The Treasury Department also released guidance indicating that, for businesses that apply for a DEA registration, the effect of the rescheduling order for purposes of Internal Revenue Code Section 280E is retroactive to the beginning of 2026. Under that guidance, qualifying medical cannabis businesses that filed for and ultimately receive a DEA registration will not be subject to the Section 280E deduction disallowance for 2026.
Resource 1: Cannabis Rescheduling and DEA Registration Webinar
Recording
Dentons Partner Hannah King co-presented a webinar with Calvin Shannon, Principal at CPA firm BGM, discussing the latest developments surrounding federal cannabis rescheduling and what it means for medical and adult-use operators.
What viewers will learn:
- The status of federal cannabis rescheduling and what to expect in 2026
- DEA registration requirements for medical cannabis operators and important filing deadlines
- How rescheduling may impact IRS Section 280E and cannabis business taxation
- Key differences between medical and adult-use cannabis treatment under the proposed framework
- Initial thinking on operational and compliance considerations for dual-license and co-located operators
- Practical steps cannabis businesses should take now to prepare for potential regulatory changes
Watch the replay: Cannabis Rescheduling and DEA Registration: Q&A with Calvin Shannon of BGM and Hannah King, Esq. of Dentons
We encourage all medical cannabis license holders to watch this replay for practical guidance on navigating cannabis rescheduling, DEA registration, and the evolving federal regulatory framework impacting the cannabis industry.
Resource 2: Downloadable Guide on What License Holders Need to Know
Dentons prepared a downloadable PDF resource Medical Cannabis Rescheduling: What License Holders Need to Know designed as a practical reference for Kentucky medical cannabis license holders. The guide covers:
- What changed with the rescheduling order
- Who is affected
- DEA registration timing, process, and application categories
- Risks of missing the expedited filing window
- Section 280E tax implications
- What has not changed at the state level
- An action items checklist for operators
We encourage license holders to share this resource with their teams as they navigate the new requirements and opportunities arising from rescheduling.
Resource 3: DEA Site Inspections Webinar – August 18, 2026
The DEA has started conducting on-site inspections of cannabis businesses that submitted registration applications. These visits can happen with little or no notice, and operators are asked to demonstrate in real time that their security protocols, recordkeeping, and standard operating procedures (SOPs) meet federal standards. Dentons provided a practical session for clients on what to expect during a DEA site inspection, common gaps that trip up registrants, and concrete steps to strengthen your compliance posture before an inspector arrives.
Introducer & Moderator
- Eric P. Berlin, Partner, Dentons
- Amy Rubenstein, Partner, Dentons
Speakers
- Joanne Caceres, Partner, Dentons
- Lauren Estevez, Senior Managing Associate, Dentons
- Sabrina Noah, Principal, Poppy Public Affairs
If you’d like to connect directly about your current compliance posture, please feel free to reach out to a member of the Dentons cannabis group.
