Terry Cole is officially the nation’s top drug enforcement official after a narrow 50 to 47 Senate vote on July 22 confirmed his appointment. As DEA Chief, Terrance Cole now holds the power to resume or halt a cannabis rescheduling process that has remained dormant for half a year. While telling senators the issue would be an early priority, he stopped short of endorsing any specific outcome. Cannabis industry leaders are now watching closely, urging him to listen to experts, act transparently, and bring long-delayed reform into motion.
Key Takeaways
- DEA Chief Terrance Cole was confirmed by the Senate on July 22
- He now controls the federal cannabis rescheduling process
- Industry leaders want science-based reform, not political delays
- Schedule III reclassification could ease taxes and research restrictions
- Stakeholders say Cole’s first 100 days will be critical
DEA Chief Terrance Cole Now Controls Cannabis Rescheduling
The proposed rule to reclassify cannabis from Schedule I to Schedule III was recommended by the Department of Health and Human Services and signed off by former Attorney General Merrick Garland. It was published in the Federal Register but never fully supported by the DEA. With his confirmation, DEA Chief Terrance Cole now has exclusive authority to resume the public hearing process that would move the rule forward or let it stall further.
Cole told the Senate Judiciary Committee in April that reviewing the agency’s position on cannabis would be “one of [his] first priorities.” Still, he offered no timeline or direct commitment, only saying he would review the matter carefully. Cannabis remains a Schedule I substance, a classification reserved for drugs with no accepted medical use and high abuse potential. Reclassification to Schedule III would not legalize marijuana federally, but it would make research easier and allow cannabis businesses to deduct operating expenses under IRS code 280E.
Cannabis Leaders Urge to Follow the Science
Many cannabis stakeholders welcomed the confirmation with guarded optimism. Aaron Smith, CEO of the National Cannabis Industry Association, said the group stands ready to work with DEA Chief Terrance Cole and the Trump administration to implement evidence-based cannabis reform. Smith emphasized that cannabis should ultimately be removed from the Controlled Substances Act altogether, but acknowledged that Schedule III would be a step in the right direction.
In a public letter, Smith stressed that the HHS recommendation to reschedule cannabis is based on established scientific and legal standards. He urged Cole to move the process forward transparently and collaborate with industry professionals who understand both the public health needs and operational realities of regulated cannabis markets. Smith also criticized past delays under the previous DEA, which he described as slow and clouded by political interference.
Political Concerns Surround Terrance Cole’s Appointment
Kyle Sherman, founder and CEO of Flowhub, expressed concern about the political motives behind Terrance Cole’s nomination. President Trump publicly linked the pick to Virginia Governor Glenn Youngkin, a known cannabis opponent, and said he would hold Youngkin accountable for Cole’s performance. Sherman warned that the appointment may reflect loyalty over policy expertise.
Still, Sherman pointed to Executive Order 14215 as a possible safeguard. Signed by Trump in February 2025, the order prohibits federal agencies from deviating from the legal interpretations of the president and attorney general. That means Cole may be obligated to carry out Trump’s own campaign promise to unlock safe access to medical cannabis through reclassification. Sherman said the industry remains hopeful, but added, “We’ll be watching closely.”
DEA Chief Terrance Cole’s Role in Cannabis Finance Reform
Terry Mendez, CEO of Safe Harbor Financial, said the confirmation marks an important inflection point but warned that rescheduling alone will not resolve the financial hurdles cannabis operators face. Mendez emphasized that while Schedule III could reduce tax burdens and signal a shift in federal tone, it will not eliminate the compliance concerns that prevent major banks from serving the industry.
According to Mendez, most cannabis businesses still rely on specialized institutions for access to banking, and many face higher fees and regulatory red tape. He called for more comprehensive reform, including updated guidance from federal agencies and passage of legislation like the SAFER Banking Act. Mendez added that Terrance Cole has an opportunity to help modernize federal oversight by recognizing the real financial challenges legal cannabis operators face.
What the DEA’s New Focus Could Mean for Cannabis
Anthony Coniglio, CEO of NewLake Capital Partners, sees Terrance Cole as someone who could modernize the agency’s enforcement priorities. Coniglio pointed to Cole’s statements during confirmation, where he identified fentanyl trafficking and transnational criminal networks as top concerns. That approach mirrors the DEA’s 2025 National Drug Threat Assessment, which downplays cannabis as a threat and emphasizes synthetic opioids and organized crime.
For Coniglio, rescheduling cannabis is more than a procedural update, it’s a signal to the industry and the public that the DEA is ready to distinguish between legitimate, regulated operators and dangerous illicit actors. Whether Cole chooses to lead with science and enforcement clarity or maintain the status quo will likely be revealed in his first 100 days.
Conclusion
Now confirmed, DEA Chief Terrance Cole has inherited a pivotal decision that could reshape federal cannabis policy. The path forward is not just a regulatory choice, but a test of whether his leadership will be guided by science, public health, and fairness, or slowed by politics and indecision. For cannabis operators, researchers, patients, and advocates, the next chapter depends on how soon Cole acts and whether his decisions reflect the reality on the ground. One thing is clear: the spotlight is on the DEA, and the clock is ticking.
This article is based on publicly available legislative records, court filings, industry reports, and published research as of the publication date. Cannabis laws and regulations change frequently — verify current rules with your state’s regulatory agency.
