Stablecoins and cannabis after rescheduling: what’s legal now.

Since April 28, 2026, marijuana covered by a state medical marijuana license is a Schedule III drug, and the businesses that handle it must register with the DEA. All other marijuana, including adult-use, is still Schedule I. Stablecoins don’t escape federal anti-money-laundering rules, so serving cannabis businesses still takes careful screening.

The April 2026 rescheduling order is the first change to marijuana’s federal status since Congress placed it in Schedule I in 1970. For stablecoin cannabis payments, it draws a new line: some cannabis sales are now lawful under federal law, and most still are not. This guide explains where that line falls, whether dispensaries can accept crypto or stablecoins, and what the GENIUS Act requires of the stablecoin issuers and payment companies in between.

What changed on April 28, 2026?

The Attorney General signed the rescheduling order (AG Order 6754-2026) on April 22, 2026, and it took effect when it was published in the Federal Register on April 28. It moved two categories of marijuana to Schedule III:

• Marijuana in a product approved by the U.S. Food and Drug Administration.
• Marijuana subject to a state medical marijuana license.

Synthetic THC is excluded. All other marijuana, including all adult-use (recreational) marijuana, “remains a schedule I controlled substance.”

Rescheduling did not create an exemption from federal registration. Medical cannabis operators must register with the DEA, which set up an expedited process for them. A valid state license counts as conclusive evidence for registration, and if the state license lapses, the DEA registration is suspended automatically. Operators who applied within 60 days of the order’s publication may keep operating while their applications are pending.

Two challenges are still open. A broader DEA hearing on moving all marijuana to Schedule III (Docket 1362) ran from June 29 to July 15, 2026. The chief administrative law judge paused it on September 29, 2026, to consider a new Government Accountability Office report that found the FDA lacked formal procedures for evaluating drugs for scheduling, and set October 13 for the government’s response. Separately, opponents challenged the April order in the U.S. Court of Appeals for the D.C. Circuit (No. 26-1106). The court denied their request to block it on September 9, 2026, so the order stays in effect while the case continues.

Can dispensaries accept crypto or stablecoins?

No federal law bars a dispensary from accepting cryptocurrency or stablecoins. The risk sits with everyone who touches the money: the wallet provider, the payment processor, the exchange and the stablecoin issuer.

Federal money-laundering law treats proceeds from dealing in a controlled substance as “specified unlawful activity,” whatever the drug’s schedule. So the question for each cannabis payment is whether the sale itself is lawful under federal law:

• DEA-registered medical sales are lawful Schedule III activity, so their proceeds are not criminal proceeds.
• Adult-use sales are still Schedule I distribution. Processing those payments carries the same federal money-laundering risk it did before April 28.
• Unregistered medical sales are unlawful Schedule III distribution, a federal felony with a maximum of 10 years in prison (21 U.S.C. §841(b)(1)(E)).

Card networks add a second barrier. Visa and Mastercard prohibit cannabis transactions on their networks, and the Government Accountability Office has noted that “cashless ATM” workarounds may violate network rules. That gap is why crypto payment apps have appeared at dispensaries, though use is still small: one New Jersey dispensary that accepts USDC and USDT through a payment app reported about 12 crypto payments out of roughly 2,000 transactions a month.

What the GENIUS Act means for stablecoin issuers that serve cannabis

The GENIUS Act (Public Law 119-27), signed July 18, 2025, doesn’t mention cannabis. It still shapes what stablecoin issuers will allow, because it:

• Treats permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act, with anti-money-laundering, customer identification and sanctions programs, and requires them to be able to block, freeze and reject transactions (§4(a)(5)(A)).
• Requires issuers to comply with lawful orders to seize, freeze, burn or prevent the transfer of stablecoins (§4(a)(6) and §2(16)).
• Bars digital asset service providers from offering stablecoins in the United States that aren’t issued by a permitted issuer, starting July 18, 2028 (§3(b)(1)).

The Act takes effect on the earlier of January 18, 2027, or 120 days after final regulations are issued. Treasury, FinCEN and the banking regulators have proposed rules, and none is final yet.

For cannabis, this means a stablecoin issuer can freeze tokens tied to an unlawful sale, and each issuer’s compliance program will decide which cannabis merchants its stablecoin can serve. Payment companies should expect issuers to ask about their cannabis exposure.

Risk table: which cannabis businesses can a payment provider serve?

Cannabis payments in New York and Texas

New York. Adult-use dispensaries remain Schedule I businesses under federal law. New York’s rules require dispensaries to record how each sale was paid (9 NYCRR 123.10), and a 2023 Office of Cannabis Management delivery FAQ says delivery orders can’t be paid in cash. The rules don’t address cryptocurrency. Operators in New York’s medical program are the ones positioned to seek DEA registration. Our New York cryptocurrency lawyers advise payment companies and operators in the state.

Texas. HB 46, effective September 1, 2025, expanded the Texas Compassionate Use Program, raising the number of dispensing organization licenses to 15 and adding qualifying conditions, including chronic pain. It says nothing about payment methods. Licensed Texas dispensing organizations should confirm whether the April order and DEA registration apply to them. Our Houston office works with Texas clients.

What stablecoin and crypto payment providers should do now

1. Sort every cannabis merchant into one of the rows in the risk table.
2. For medical merchants, collect the state license and the DEA registration or proof of a timely application, and recheck both on a schedule.
3. Decide in writing whether you will serve adult-use merchants. If you will, follow FinCEN’s 2014 guidance, including its three suspicious activity report categories.
4. Review your stablecoin issuer’s and card network’s terms for cannabis restrictions.
5. Build freeze and order-response procedures before the GENIUS Act takes effect.
6. Keep records showing the federal status of each merchant at the time of each transaction.

Does rescheduling end the 280E tax problem?

Section 280E of the tax code bars businesses that traffic in Schedule I or II drugs from deducting ordinary business expenses. Medical marijuana covered by the April order is now in Schedule III, which 280E doesn’t reach. On April 23, 2026, Treasury said it and the IRS plan to issue guidance limiting 280E to activity that is still trafficking, with costs split between the two where a business does both, and a transition rule starting with the first full tax year that includes the order’s effective date. The IRS’s 2026–2027 Priority Guidance Plan lists the project. No guidance has been issued yet.

What we’re watching

Stablecoin and cannabis questions

Is medical marijuana legal under federal law now?

Marijuana covered by a state medical license, and marijuana in FDA-approved products, are now Schedule III. Businesses that handle it still need a DEA registration or a timely pending application. Adult-use marijuana remains Schedule I.

Can a dispensary accept bitcoin or USDC?

No federal law prohibits it directly. The risk falls on the payment companies, exchanges and stablecoin issuers handling the funds. For DEA-registered medical dispensaries, the sales are lawful under federal law. For adult-use dispensaries, they are not.

Can banks now serve medical marijuana businesses?

Rescheduling lowers the risk for DEA-registered medical operators, because their sales are now lawful under federal law. FinCEN hasn’t updated its 2014 guidance, so each bank still sets its own policy.

Does the GENIUS Act ban stablecoin payments for cannabis?

No. The Act doesn’t mention cannabis. It requires stablecoin issuers to run anti-money-laundering programs and to be able to freeze tokens, which will shape whether an issuer lets its stablecoin be used for cannabis sales.

Does rescheduling help adult-use dispensaries in New York?

No. Adult-use sales in New York, and in every other state, are still Schedule I under federal law. Only medical operators covered by the April order benefit.

Will all marijuana move to Schedule III?

Possibly. That is the subject of the paused DEA hearing. Until it ends and a final rule follows, adult-use marijuana stays in Schedule I.

Related: Stablecoin and payments lawyers · GENIUS Act stablecoin rules · U.S. regulatory counsel · All Intelligence

Update log: October 10, 2026, first published.

Crystal V. Venning, Esq.

Founder and Managing Partner, Crypto Law Hub. Admitted in New York, Texas and Georgia. Educated at Yale University and Columbia Law School (J.D.). She advises founders, funds and institutions on digital-asset law, from stablecoins and token offerings to disputes and cross-border launches.