The Trump Administration's decision to reclassify state-legal medical marijuana could have significant impacts for Colorado's cannabis industry. The move was immediately implemented by U.S. Attorney General Todd Blanche, who immediately rescheduled medical marijuana from the most restrictive Schedule I classification to the less restrictive Schedule III. The order also put FDA-approved cannabis products into Schedule III and effectively split the market in states that have legalized both medical and recreational marijuana. While some industry insiders believe this move recognises the medical value of marijuana, it also raises significant questions about the distinction between cannabis regulated under state medical programs and cannabis sold through adult-use markets. The most immediate effect of reclassification is expected to benefit cannabis companies that hold medical licenses, as they will be allowed to deduct certain operating expenses from taxable gross income that were previously prohibited. However, it remains unclear how these companies will leverage this financial benefit.