**Partial rescheduling of state-licensed medical marijuana and FDA-approved products to Schedule III took effect in April 2026 under an Acting Attorney General order, while broader rescheduling of all marijuana from Schedule I remains under active administrative review.** A DEA hearing on the full proposal, limited to opposing parties such as Smart Approaches to Marijuana and select states, ran from late June through mid-July 2026, with the administrative law judge now expected to issue a recommendation. DEA filings in the proceeding affirm that marijuana meets criteria for Schedule III based on accepted medical use and safety under supervision, citing widespread state programs. Recent federal court rulings have allowed the process to continue despite challenges from industry opponents. Trader odds reflect uncertainty over the timeline for any final rule expanding beyond the medical carve-out already implemented, alongside procedural steps that could extend into late 2026 or beyond.