On Dec. 18, 2025, President Trump signed Executive Order 14370, “Increasing Medical Marijuana and Cannabidiol Research.” The order has sparked renewed attention around whether federal agencies will move cannabis from Schedule I to Schedule III, and what that could mean for tax planning and compliance. In a recent interview, Renata Serban, chair of the NYCPA Cannabis Community and CEO of Highly Elevated CPA, cautioned that the executive order should be understood as a directional push, not an immediate change in the law. 

“It’s just a signal,” Serban said. “Start doing something.” In her view, the order “puts official executive pressure on agencies to finish the rescheduling rulemaking process rather than leaving it stalled.” It also reflects “recognition at the federal level about medical use of cannabis,” which she described as a key premise behind any move to Schedule III.  

For operators and practitioners, the most pressing question is what this could mean for Section 280E, the provision that limits ordinary business deductions for businesses trafficking in Schedule I or II substances. Serban emphasized that the executive order itself does not change current tax treatment. “For 2025, 280E is still in effect,” she said. “The executive order is not the final rule.” Until agencies complete the rescheduling process, she added, 280E remains “legally the law of the land.”  

Serban also highlighted a practical hurdle that many stakeholders overlook, the role of the Drug Enforcement Administration (DEA) in any Schedule III framework. “Under federal law, Schedule III substances must be dispensed by a pharmacy with a valid federal prescription issued by DEA-registered practitioners,” she said. That requirement does not map early onto the current state-legal model, including medical programs that rely on state recommendations rather than federal prescriptions. “A lot of operators don’t realize this gap with the DEA,” she said, calling it “very, very important” for the industry to understand.  

Given the uncertainty, Serban’s advice to CPAs leans conservative and clear. “The strategy for 2025 is to stay 280E-compliant,” she said, while closely monitoring developments in 2026 and beyond. She also noted that some operators may feel forced to consider riskier approaches due to cash constraints, but said those decisions should be made with full awareness of the consequences. “Inform the client of the risks,” she said. “If you understand the risk and still want to take that position, it’s your choice.”  

For now, Serban’s message is that the executive order is meaningful, but it is not the finish line. “It’s a baby step,” she said, and the industry should avoid getting ahead of what agencies have actually finalized.  

A longer, more in-depth article based on this interview will appear in the March-April issue of The Trusted Professional.