Core Insights - The cannabis industry has faced numerous challenges and disappointments regarding federal legalization, leading to a perception of broken promises and financial instability [1][2] Tax Implications - President Trump's executive order to reschedule marijuana from Schedule I to Schedule III could significantly alter the tax landscape for cannabis companies, which currently face effective tax rates between 60% and 90% due to Section 280E of the tax code [3][4] - The eight largest multistate cannabis operators have only paid $600 million of approximately $2.6 billion owed in taxes from 2019 to September 2025, indicating a growing financial crisis for technically profitable companies [4] - Rescheduling to Schedule III would eliminate the punitive tax treatment, allowing companies to redirect funds previously set aside for tax liabilities towards expansion and growth initiatives [5] Financial System Access - Rescheduling could also facilitate cannabis companies' access to the American financial system, which has been largely inaccessible due to the classification of marijuana as a Schedule I substance [6] - Currently, most cannabis retailers operate as cash businesses, creating security risks and making them targets for robberies focused on cash rather than products [7]