Reducing federal restrictions could alleviate substantial tax burdens on marijuana businesses and facilitate more comprehensive research, which is currently hindered by the drug's Schedule I classification.

In a landmark move, the Justice Department has initiated the reclassification of marijuana, signaling a profound shift in decades of U.S. drug policy.

On Thursday, a proposed rule was submitted to the federal register that acknowledges the medicinal benefits of cannabis and its comparatively lower abuse potential.

Endorsed by Attorney General Merrick Garland, this marks a significant change but stops short of full legalization for recreational use.

The proposed reclassification will move marijuana from its current status as a Schedule I drug, a class that includes LSD and heroin, to a Schedule III substance, which includes drugs like ketamine and certain anabolic steroids.

This change follows a recommendation from the Department of Health and Human Services (HHS), which began reviewing marijuana's status in 2022 at President Joe Biden's request.

President Biden has been vocal about rectifying the injustices linked to marijuana prohibition.

He has pardoned thousands convicted of simple possession at the federal level and urged state and local leaders to follow suit.

"This is monumental," Biden stated in a video message, emphasizing the need to correct the longstanding inequities caused by past policies. "Far too many lives have been upended because of a failed approach to marijuana, and I'm committed to righting those wrongs. You have my word on it."

The reclassification process now enters a 60-day public comment phase, potentially followed by a review from an administrative judge, which could prolong the final decision.

Despite the lengthy process, the momentum for change reflects broader societal shifts and political pressure. Bipartisan support for reclassification has grown as marijuana becomes more decriminalized and accepted, particularly among younger generations.

However, some advocates argue that reclassification does not go far enough, calling for marijuana to be regulated like alcohol.

Senate Majority Leader Chuck Schumer praised the move but urged further steps toward full legalization.

The U.S. Cannabis Council, representing industry stakeholders, described the reclassification as a "tectonic shift away from the failed policies of the last 50 years."

The Justice Department's rule cites HHS data indicating that although marijuana is associated with a high prevalence of abuse, its potential for abuse is comparable to other Schedule III drugs. Attorney General Garland concurred with HHS's findings to advance the rulemaking process.

Despite this significant development, the immediate impact on the criminal justice system is expected to be limited, as federal prosecutions for simple possession have become rare.

Schedule III drugs remain controlled substances, and unauthorized trafficking can still result in federal prosecution.

Federal drug policy has been slow to keep pace with state-level changes. Currently, 38 states, Washington D.C., and a handful of U.S. territories have legalized medical marijuana, and 24 have legalized recreational use.

This divergence has fueled a burgeoning marijuana industry, estimated to be worth nearly $30 billion. Reducing federal restrictions could alleviate substantial tax burdens on marijuana businesses and facilitate more comprehensive research, which is currently hindered by the drug's Schedule I classification.

As the Justice Department moves forward, this reclassification represents a pivotal moment in the evolution of U.S. drug policy, reflecting a broader acknowledgment of marijuana's medical value and a more balanced approach to its regulation.