On April 17, 2025, two significant bipartisan cannabis reform bills were introduced in the U.S. Congress, aiming to reshape federal cannabis regulations significantly. The PREPARE Act of 2025, introduced by Republican Congressman Dave Joyce of Ohio, seeks to establish a ‘Commission on the Federal Regulation of Cannabis.’ This commission would be responsible for developing proposals to create a fair and transparent regulatory framework for cannabis at the federal level.
The current classification of cannabis as a Schedule I substance under federal law restricts medical research and complicates interstate commerce, leaving many individuals and businesses in a state of legal uncertainty. If the PREPARE Act is enacted, the Attorney General would be required to form the commission within 30 days. This commission would consist of at least 29 members from various government departments and include independent experts in public health, agriculture, tax policy, and criminal justice, as well as individuals previously incarcerated for non-violent cannabis offenses.
The commission, while lacking rulemaking authority, would serve as an advisory body. Within 120 days of its formation, it must publish an initial report with recommendations on key issues such as equitable access to cannabis markets, labeling standards, and guidance for interstate trade. After a year, the commission would release its final recommendations following input from industry stakeholders.
Joyce emphasized the importance of the PREPARE Act, stating, ‘Nearly all 50 states have legalized or enacted cannabis to some degree, bringing us closer to the inevitable end of federal cannabis prohibition.’
In tandem with the PREPARE Act, Joyce introduced the STATES 2.0 Act. This legislation aims to grant states and Native American tribes the authority to regulate cannabis independently of federal oversight. The STATES 2.0 Act proposes the complete removal of cannabis from the federal drug schedule, allowing states to decide on the legality and regulation of cannabis without interference.
This act would enable states to permit or prohibit cannabis production and sale as they see fit, effectively exempting these activities from most provisions of the Controlled Substances Act. Additionally, it includes provisions for interstate cannabis trade, provided both the originating and destination states consent.
Under the STATES 2.0 Act, the Food and Drug Administration (FDA) would assume regulatory oversight of cannabis products, aligning them with existing food, drug, and supplement regulations. If passed, businesses that comply with state cannabis laws would no longer face federal criminal charges, asset forfeiture, or restrictions under IRS Section 280E, which currently prevents cannabis businesses from deducting standard business expenses.
These legislative efforts highlight a growing recognition of the need for a comprehensive federal approach to cannabis regulation, responding to the evolving landscape of state-level cannabis legalization. As the bills progress, they could mark a significant shift in how cannabis is treated under U.S. law, paving the way for a more cohesive regulatory environment for the cannabis industry.
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