WASHINGTON— President Donald Trump has moved to reclassify marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act, a significant policy shift that could ease federal restrictions on cannabis and reshape its treatment under U.S. law. But both the Defense CU Council and America’s Credit Unions are saying many of the risks in serving the cannabis industry remain for financial institutions.
The decision recognizes accepted medical use for cannabis at the federal level and lowers its classification from the most restrictive category, which includes drugs deemed to have no medical value and a high potential for abuse. Schedule III substances are considered to have moderate to low potential for dependence.
According to Reuters and the Associated Press, the change could have wide-ranging implications, including reduced tax burdens for cannabis businesses and expanded opportunities for research, though marijuana would remain a controlled substance subject to federal regulation.
DCUC: ‘Meaningful Step, But…’
In a statement, the Defense Credit Union Council said the move represents “a meaningful step toward aligning federal policy with economic and legal realities across the states.”
“For decades, credit unions have operated under a complex and often contradictory framework, serving businesses that are legal under state law while navigating significant uncertainty at the federal level. That tension has left many institutions cautious, limiting access to financial services for legitimate, state-licensed cannabis-related businesses,” Chief Advocacy Officer Jason Stverak said in a statement. “Today’s action begins to ease that long-standing conflict.”
DCUC said the reclassification may help reduce compliance ambiguity tied to anti-money laundering requirements and the Bank Secrecy Act, particularly for institutions regulated by the National Credit Union Administration.
Caution Shared
However, the group cautioned that the change does not fully resolve regulatory challenges.
“The policy change does not immediately eliminate regulatory risk, examiner uncertainty, or the significant compliance burden institutions face when considering entry into the cannabis banking space,” Stverak said. “Implementation will require additional rulemaking, guidance, and coordination across federal agencies, including the Department of Justice and the Department of Health and Human Services.”
The U.S. Department of Justice and U.S. Department of Health and Human Services are expected to play key roles in implementing the change.
DCUC said many credit unions are likely to maintain a cautious approach in the near term, with larger institutions potentially exploring expanded involvement in cannabis-related banking while others await clearer regulatory guidance.
“That is why DCUC continues to point to the SAFE Banking Act and similar proposals as essential next steps,” Stverak said, referring to legislation aimed at providing protections for financial institutions serving cannabis businesses. “Without it, uncertainty will persist, even as policy at the classification level evolves.”
Clearing the Haze
DCUC added that while the administration’s decision marks progress, broader legislative action will be needed to clear some of the haze.
“Today’s decision represents real progress and a significant shift in federal posture. But it is not the final step,” Stverak said. “True clarity, and full participation by credit unions in serving this emerging sector, will require Congress to act to establish durable, consistent protections that match the evolving policy landscape.”
America’s Credit Unions: Operational Risks Remain
In a statement, America’s Credit Unions SVP-Advocacy Greg Mesack said, “Without comprehensive marijuana banking legislation, credit unions still face operational risks and restrictions to serving this burgeoning industry regardless of its drug classification. Congress must pursue solutions like the SAFER Banking Act to provide credit unions with safe harbor protections, compliance framework, and reduced operational risks. These guarantees would allow credit unions the security to provide the cannabis industry with financial services. America’s Credit Unions continues to urge Congress to provide credit unions with certainty that serving the cannabis industry will not incur unnecessary risk and consequences from regulators.”
