Are CBD Isolates No Longer a Schedule 1 Drug? DEA Moves It to Schedule 5 (with Stipulations)

The U.S. Drug Enforcement Agency (DEA) has removed CBD’s Schedule 1 controlled substance classification, moving it to the less restricted Schedule 5 under the condition that each drug is first FDA-approved. Cannabidiol (CBD) is a compound extracted from the cannabis or hemp plant, but it does not contain any psychoactive components like THC, so it provides medical benefits without the high of marijuana. Still, for years CBD has faced the same strict restrictions as THC and other Schedule 1 drugs. The recent decision to treat certain cannabinoids more leniently not only excites investors and producers who stand to gain from the growth of the CBD industry, it also represents a potential admission of the medical value of cannabis.

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FDA Says CBD Should Be Descheduled Completely

On September 27^th the DEA announced that any FDA-approved CBD drug that contains less than 0.1% THC (i.e. – CBD isolate) is now considered a Schedule 5 drug. However, since the drug must be approved by the FDA before it can fully claim its Schedule 5 status, that means the agency may have its hands full trying to review and approve the ongoing wave of CBD products. As a result, the FDA has suggested that CBD should be descheduled altogether. Earlier this year, the FDA sent a letter to the DEA stating that CBD does not meet any of the criteria required for placement on the controlled substances list.

A Sign of Leniency Towards Cannabis?

This is the first time the DEA has removed a Schedule 1 status from any cannabis related product. With so many states now considering legalization or decriminalization on the statewide level, many are wondering whether this is the beginning of an incremental shift towards federal legalization. Just three months ago, the FDA approved the first cannabis-derived medicine, Epidiolex, an epilepsy drug made from cannabis plants grown in the UK. While these events may indicate a heightened acceptance of the medicinal value of cannabinoids, there’s no guarantee that the federal government will loosen its reigns to the point of completely ending all forms of cannabis prohibition.

CBD Investors and Marijuana Entrepreneurs Excited

Following the DEA’s rescheduling of FDA-approved CBD drugs, a number of investment firms released lists of cannabis stocks to be on the lookout for. Surprisingly, the CBD industry is growing faster than the cannabis industry as a whole, with an estimated $22 billion-dollar worth within the next 5 years. While getting a CBD drug approved by the FDA might take time, the DEA’s recent decision has given hope to investors who were already optimistic about the strength of cannabis stocks like GW Pharmaceuticals, TilrayInc, and others.

CBD Product Development on the Rise

From gummy bears to bottled sodas, there’s been a boom in the development of all sorts of CBD products in recent years. CBD isolates and epilepsy drugs aren’t the only kinds of products that may benefit from the new leniency, as there’s an entire sector of CBD-containing foods, beverages, and medicines out there just waiting to capitalize.