{"id":11174,"date":"2026-07-26T15:40:44","date_gmt":"2026-07-26T15:40:44","guid":{"rendered":"https:\/\/cannabisindustryjournal.com\/?post_type=feature_article&amp;p=39081"},"modified":"2026-07-26T15:40:44","modified_gmt":"2026-07-26T15:40:44","slug":"qa-hirsh-jain-on-cannabis-rescheduling-interstate-commerce-and-the-next-wave-of-market-growth","status":"publish","type":"post","link":"https:\/\/cannitrol.com\/blog\/qa-hirsh-jain-on-cannabis-rescheduling-interstate-commerce-and-the-next-wave-of-market-growth\/","title":{"rendered":"Q&amp;A: Hirsh Jain on Cannabis Rescheduling, Interstate Commerce and the Next Wave of Market\u00a0Growth"},"content":{"rendered":"<div id=\"wp_fb_like_button\" style=\"margin:5px 0 5px 5px;float:right;height:100px;\"><script src=\"http:\/\/connect.facebook.net\/en_US\/all.js#xfbml=1\"><\/script><fb:like href=\"https:\/\/cannitrol.com\/blog\/qa-hirsh-jain-on-cannabis-rescheduling-interstate-commerce-and-the-next-wave-of-market-growth\/\" send=\"true\" layout=\"standard\" width=\"450\" show_faces=\"false\" font=\"arial\" action=\"like\" colorscheme=\"light\"><\/fb:like><\/div><div><img src=\"https:\/\/cannitrol.com\/blog\/wp-content\/uploads\/2026\/07\/qa-hirsh-jain-on-cannabis-rescheduling-interstate-commerce-and-the-next-wave-of-market-growth.png\" class=\"ff-og-image-inserted\" \/><\/div>\n<p><span data-preserver-spaces=\"true\">Cannabis federal reform has finally reached a historic moment. Medical cannabis is moving through the rescheduling process after decades under federal prohibition, marking one of the biggest developments in the industry\u2019s history.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The final outcome could determine how companies expand, whether cannabis can move across state lines, and which markets become the next major opportunities.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Hirsh Jain, CEO of <a href=\"https:\/\/www.anandastrategy.com\/\">Ananda Strategy<\/a>, shares his perspective on where rescheduling stands, whether interstate commerce will be allowed, and which states businesses should be watching next.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Where does the process stand today?<\/span><\/strong><\/p>\n<p><span>I think it is helpful to separate the rescheduling process into two parts: the rescheduling of medical marijuana and what is being described as the full rescheduling of marijuana.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Medical marijuana was rescheduled through the Todd Blanche order issued on April 23. The question now is whether that action survives the legal challenges that have been brought against it.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The lawsuits argue, among other things, that the process did not comply with the Administrative Procedure Act and that the government should have gone through a formal notice-and-comment process.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The key issue right now is standing. Before the court even considers the arguments on the merits, the plaintiffs need to demonstrate that they have suffered a concrete injury as a result of the rescheduling decision.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The Department of Justice has argued that some of the plaintiffs cannot meet that threshold. For example, one argument against MMJ Biopharmaceuticals is that it does not yet have a product on the market, meaning it has not suffered an economic injury from rescheduling.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If the court agrees that the plaintiffs lack standing, the case could be dismissed. If the court finds standing exists, the next question becomes whether a stay should be granted, which would pause the rescheduling process while the broader lawsuit moves forward.<\/span><\/p>\n<h4><strong>What about the broader rescheduling hearing?<\/strong><\/h4>\n<p><span data-preserver-spaces=\"true\">The hearing to consider the full rescheduling of marijuana concluded on July 15. The parties have until August 17 to submit their final briefs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I expect that this process will continue for several months.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Some people have suggested we could see a final rule by late summer or early fall, but I think that timeline is unlikely.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">After the administrative law judge receives the final briefs, they need to issue a recommendation. There is no statutory deadline requiring that decision to come quickly.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Then the decision moves to the DEA administrator, who has the authority to disagree with the administrative law judge\u2019s recommendation as long as they provide a reasoned explanation.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">We have historical precedent for this. In 1988, administrative law judge Francis Young recommended that cannabis be rescheduled, but the DEA ultimately rejected that recommendation.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">After the DEA administrator weighs in, the matter moves to the Attorney General for a final rule. Then there is a 30-day window where parties can challenge the decision legally.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">So while I am cautiously optimistic, I think we should recognize there are many procedural opportunities for delay.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">The DEA appeared to take a narrower approach during the hearing by focusing on medical use rather than legalization. Does that improve the chances of rescheduling?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">I think that strategy made a lot of sense.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The DEA was very clear that the question before them was not whether cannabis should be legalized or whether cannabis is harmless. The question was whether marijuana has a currently accepted medical use.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">By narrowing the issue, they created a stronger legal argument.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I am optimistic about the substance of the hearing. My concern is less about the underlying argument and more about the procedural mechanisms that opponents can use to slow the process.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Companies like Trulieve have successfully uplisted to major exchanges. What does that signal about investor confidence?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">I think it demonstrates that exchanges are evaluating cannabis through a very technical legal lens.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Trulieve and Glass House were able to structure their businesses in a way that emphasized their medical operations and created a pathway toward federal legality.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Other companies, like Curaleaf, have taken a more cautious approach and indicated they want to wait until full rescheduling occurs before pursuing uplisting.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I think the broader takeaway is that if we are in a world six months from now where full rescheduling has occurred, we could see many more operators pursue uplisting.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Could rescheduling finally open the door to interstate commerce?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">This is one of the biggest questions facing the industry.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Historically, interstate commerce did not exist because cannabis was federally illegal, but I think the more complete explanation is the structure created by the Cole Memorandum.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">After Colorado and Washington legalized cannabis in 2012, the federal government essentially allowed states to experiment as long as they avoided certain enforcement priorities. One of those priorities was preventing diversion across state lines.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That created the foundation for state-based markets.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Even after the Cole Memo was rescinded, states continued operating under that framework. Over time, every state built its own isolated system.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Rescheduling could change that conversation because it creates a stronger argument for federal legality. That could make courts more receptive to challenges based on the Dormant Commerce Clause.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But this would not happen overnight.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There are three potential pathways:<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">First, courts could determine that state restrictions on interstate commerce violate the Dormant Commerce Clause.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Second, individual states could reform their cannabis laws to allow interstate commerce.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Third, states could create interstate compacts where participating states agree to allow commerce between them.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I think interstate commerce will happen gradually. It will likely begin with groups of states that are willing to work together, rather than a nationwide opening all at once.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">How would interstate commerce change the industry?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">It would completely change the strategy of scaling cannabis businesses.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Right now, companies often have to build cultivation, manufacturing, and distribution infrastructure in every state where they operate.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If interstate commerce becomes possible, companies could manufacture products in one location and distribute them across multiple states.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That would dramatically change the economics of the industry and reduce some of the pressure operators face today.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Which states do you see driving the next wave of cannabis growth?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">The industry has been starved for growth over the past few years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Between 2016 and 2023, we saw a steady stream of states launching adult-use markets. Over the past three years, that momentum slowed.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The exciting thing is that by 2027, I think we can identify several meaningful growth markets.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The biggest one is Virginia.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Virginia is currently a limited medical market, but adult-use sales are scheduled to begin in 2027. Most analysts believe the state could eventually become a multibillion-dollar market.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">What makes Virginia particularly interesting is its geography. It borders states including North Carolina and Tennessee that do not currently have adult-use programs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Virginia could become a destination market for consumers across the region.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">What about Minnesota?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">Minnesota is another market I think people should watch.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">One thing Minnesota has done particularly well is create pathways for hemp operators to transition into the regulated cannabis market.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That is a model other states should consider.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The challenge in Minnesota has been supply. The state licensed retailers, but cultivation capacity and testing infrastructure have not kept pace.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The result is that many stores have limited inventory and high prices.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I think 2027 could be a turning point because more cultivation comes online, testing capacity improves, and retailers have more products to sell.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">What medical markets are worth watching?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">I think Georgia and Texas are two of the most exciting medical markets in the country.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Together, those states represent more than 40 million people.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Georgia is particularly interesting because of the changes it has made to its medical program, including expanding qualifying conditions and allowing additional product formats.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The pharmacy model is also important.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Pharmacies are trusted healthcare providers. Many consumers who may hesitate to enter a dispensary may feel comfortable visiting a pharmacy.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Georgia has the opportunity to demonstrate a different model for cannabis distribution.<\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Final thoughts: What should cannabis businesses be watching over the next year?<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">I think the biggest thing is understanding that the industry is moving into a new phase.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Rescheduling, interstate commerce, new state markets, and changing distribution models all have the potential to reshape how cannabis companies operate.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But none of these changes happen instantly.<\/span><\/p>\n<p>The long-awaited moment has arrived. After building markets state by state under federal prohibition, companies are ready for a new chapter in the industry.<\/p>\n<div class=\"sharedaddy sd-sharing-enabled\">\n<div class=\"robots-nocontent sd-block sd-social sd-social-icon-text sd-sharing\">\n<h3 class=\"sd-title\">Share this:<\/h3>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Cannabis federal reform has finally reached a historic moment. Medical cannabis is moving through the rescheduling process after decades under federal prohibition, marking one of the biggest developments in the industry\u2019s history. The final outcome could determine how companies expand, whether cannabis can move across state lines, and which markets become the next major opportunities. 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