For the U.S. legal cannabis industry, 2024 was a mixed bag. Progress was made on rescheduling cannabis. However, there were notable setbacks: Some states, such as Florida, failed to legalize while the perennial banking ban, compounded by punitive tax burdens, remain problematic.

Complicating matters is the election of Donald Trump, which sent waves of uncertainty throughout the community. Though some leaders do feel the new incoming administration might present challenges to federal cannabis policy and psychedelic research, many are choosing to view 2025, in all its infinite possibilities, through a rosier lens when it comes to the sector.

Christina Betancourt Johnson, founder and CEO of Standard Wellness Maryland, a medical cannabis company, anticipates that, despite political resistance, the demand for mental health solutions—particularly those that embrace holistic, plant-based remedies—will continue to surge.

“Communities and businesses will be called upon to push for greater accessibility and to advocate for the freedom to choose wellness paths that prioritize personal sovereignty, especially as these choices become more culturally and politically charged,” she said. “True wellness in 2025 will be about more than products; it will be a stand for resilience, equity, and autonomy in the face of shifting policies.”

Jason Wild, executive chairman of TerrAscend, a multistate cannabis operator, expressed cautious optimism about the potential for rescheduling in 2025. “Given the uncertainty of the timeline, it’s important for the cannabis industry to have ‘multiple shots on goal,’’ he said. “If the Commerce Clause case is heard by the Supreme Court, we will be before a panel of judges who are likely to view our argument favorably. While we await the actions of the new Trump administration and Congress, this is a more predictable route with a court that has consistently upheld states’ rights—an issue central to our case.”

Morgan Paxhia, co-founder of Poseidon Investment Management, a San Francisco-based cannabis investment firm, feels the twofold effect of President-elect Donald Trump and a Republican-dominated Congress might have positive repercussions for the industry’s regulatory environment.

“This administration’s approach signals a sharp departure from previous policies, opening the door to unprecedented optionality for legal cannabis,” said Paxhia.

Trump’s cabinet appointments could also be auspicious for the industry. Paxhia cited Robert F. Kennedy Jr’s anticipated leadership of the Department of Health and Human Services as positive for rescheduling. In the same vein, President Trump may task Attorney General nominee Pam Biondi to draft a memo that could promote state autonomy in cannabis regulation.

“This memo may also help reduce barriers for cannabis businesses to access banking and investment opportunities as the rescheduling process unfolds,” added Paxhia.

Ultimately, having a smarter federal regulatory framework is key to overhauling the industry, regardless of who is president.

Said Wendy Bronfein, co-founder and chief brand officer, Curio Wellness, a multistate cannabis operator: “The fragmented regulatory structure, with each state maintaining its own set of laws and standards, continues to create logistical and operational challenges. With the right regulatory structure, we can avoid the current pressures of market fragmentation, price compression, and consolidation, and create an environment where innovation thrives, businesses scale responsibly, and the industry as a whole can mature in a way that benefits consumers, businesses, and communities alike.”