Two separate bipartisan cannabis reform bills that, if passed, would transform US cannabis regulation across the country.

On April 17, the PREPARE Act of 2025 (Preparing Regulators Effectively for a Post-prohibition Adult-use Regulated Environment) was introduced by Republican Congressman Dave Joyce of Ohio.

On the same day, Joyce also introduced the Strengthening the Tenth Amendment Through Entrusting States 2.0 Act, or STATES 2.0 Act, both of which propose sweeping overhauls of how cannabis is regulated at the federal level.

The PREPARE Act

The PREPARE Act seeks to establish a ‘Commission on the Federal Regulation of Cannabis,’ which would be tasked with constructing proposals for a ‘fair, honest, and transparent process for the federal government to establish effective regulations.’

It notes that cannabis’ current classification as a Schedule I drug under federal law severely restricts medical research, impedes interstate commerce, and leaves many individuals and businesses in legal limbo.

If the Act is passed, it would require the Attorney General, Pam Bond, to establish the commission within 30 days of its enactment, which must include 29 or more members from across government departments.

Moreover, it would require independent appointees, including experts in public health, substance misuse prevention, agriculture, commerce, tax policy, minority health, and criminal justice, alongside individuals formerly incarcerated for non-violent cannabis offences and representatives from both single-state and multi-state cannabis operators.

It’s worth noting, however, that the commission would not hold any rulemaking power, but would only act as an advisory body.

Notably, the commission would not have rulemaking power, but would instead serve as an advisory body.

Within 120 days of the bill being enacted, the commission would be asked to publish an initial report offering preliminary recommendations on a number of key issues, including equitable access to cannabis markets, standardization of labelling, integration with hemp industries, tax and revenue collection systems, as well as guidance for interstate and international trade.

Following a public comment period from industry stakeholders, the commission would then be required to publish its final recommendations after one year.

“Currently, nearly all 50 states have legalized or enacted cannabis to some degree, bringing us closer to the inevitable end to federal cannabis prohibition. Recognizing this reality, the PREPARE Act delivers a bipartisan plan,” Joyce said in a press release.

The STATES 2.0 ACT

In parallel, Joyce also introduced the STATES 2.0 ACT, which seeks to grant full autonomy to individual states and Native American tribes to regulate cannabis without federal interference.

Notably, this bill calls for cannabis to be removed from the federal drug schedule entirely, going one step further than rescheduling the drug by descheduling it completely.

Under the proposals, states would be allowed to legalize, regulate, or prohibit cannabis as they see fit, meaning that cannabis production, sale, and use would no longer be subject to most provisions of the Controlled Substances Act.

Furthermore, it would also include provisions for interstate trade of cannabis if both origin and destination states permit it.

It also lays the groundwork for federal regulatory oversight of cannabis products by the Food and Drug Administration (FDA), empowering the administration to regulate cannabis products under existing food, drug, dietary supplement, and cosmetic laws.

If passed, activities that follow local cannabis laws would no longer be considered criminal under federal law, and therefore would not be subject to asset forfeiture, and would be exempt from the controversial IRS Section 280e, which currently blocks cannabis businesses from deducting standard business expenses.