The federal government is considering reclassifying marijuana from a Schedule I to a Schedule III drug, which could significantly impact Washington State's cannabis industry and allow for tax deductions for cannabis businesses. While this potential change, announced by President Biden, has sparked mixed reactions among industry stakeholders, an administrative hearing is scheduled for December 2, with a decision expected in 2025. Industry experts, like Gary Santo from Rx Green Technologies, emphasize the complexity of the rescheduling process and the need for caution, suggesting it may take longer than anticipated due to various regulatory hurdles. Rescheduling may also affect the integration of CBD into tobacco products, as hemp-derived CBD could be legally incorporated, though products will still require FDA approval. However, cannabis products will remain restricted from being added to food and cosmetics, indicating limited changes for some aspects of the industry. Overall, the evolving landscape of cannabis regulation highlights shifting consumer demands and potential market innovations in the tobacco industry.