The US Drug Enforcement Administration (DEA) has rejected applications for federal registration from medical cannabis businesses in at least six states and Washington, D.C., according to Marijuana Moment, which first reported the story. The registrations would give firms federal protections under the Trump administration’s rescheduling of cannabis.

Industry sources told the outlet that the DEA has sent so-called orders to show cause to at least some businesses in California, Delaware, the District of Columbia, Illinois, North Dakota and Oregon. It became public late last month that the agency had approved more than 900 applicants across seven states, and had rejected those in Minnesota because of certain provisions of that state’s laws.

What the orders say

The documents differ from state to state, but industry sources who reviewed them described similarities. Marijuana Moment said it had seen the text of some. They generally cite state laws that let businesses sell non-medical cannabis as a breach of the Controlled Substances Act’s "closed system" for medical access to scheduled drugs, and of US obligations under international drug treaties.

Some also object to state rules that let certain patients obtain medical cannabis without a doctor’s written recommendation. An order sent to a California business reportedly says the state’s medical identification card process does not require a physician’s recommendation. It argues that this conflicts with the Single Convention on Narcotic Drugs, which calls for "medical prescriptions" when controlled substances are dispensed.

The California order also says the practice breaches federal rules adopted this year alongside rescheduling. Those rules treat state-issued patient certifications as sufficient for federal prescription purposes, provided they are dated and signed on the day of issue, carry the user’s name and address, and give the name, address and state licence number of the authorising practitioner.

An order to an Illinois business, like the earlier Minnesota one, reportedly says the state’s licensing of firms to sell both medical and non-medical cannabis fails to provide "robust protections" against diversion. It also cites an Illinois provision allowing military veterans to qualify by submitting a year of official VA medical records rather than a doctor’s certification.

MJBizDaily separately reported a similar order to a Washington, D.C. business, citing the city’s policy of letting patients self-certify a qualifying condition.

Background and next steps

US Attorney General Todd Blanche issued an order in April that immediately moved state-licensed medical cannabis, and cannabis products approved by the Food and Drug Administration, from Schedule I to Schedule III of the Controlled Substances Act. A DEA judge is considering a proposal to move non-medical cannabis to Schedule III too, following a hearing with testimony and briefs. It is not clear when he will make his recommendation to the agency’s administrator.

Last month the DEA also issued guidance warning that medical cannabis businesses seeking federal registration have until late November to start sourcing cannabis only from, and supplying it only to, other companies that have been granted registration or applied for it in good time.

Why it matters in the UK

The US rescheduling is closely watched internationally. In the UK, cannabis remains a Class B drug under the Misuse of Drugs Act 1971, although specialist doctors have been able to prescribe cannabis-based medicines since 1 November 2018. NHS prescriptions remain rare and most patients use private clinics.

The DEA had not publicly commented on the individual orders in the material reported, and the businesses concerned have not been named.