RAPID CITY, SD – Local cannabis advocates and business owners are weighing in on the federal government’s decision to reclassify medical marijuana, a move that industry leaders say will provide long-awaited legitimacy to the market in South Dakota and beyond.

The Trump administration officially shifted medical marijuana from Schedule I to Schedule III on Thursday, a historic policy change that acknowledges the medicinal value of the drug. For businesses in Rapid City, the shift is expected to provide significant relief from federal tax codes that previously prohibited standard business deductions for cannabis companies.

Kit Jeffries, representing the Cannabis Industry Association of South Dakota, said the move marks a turning point for the industry.

“Rescheduling of medical marijuana is a major policy shift at the federal government that helps legitimize cannabis businesses across 40 states,” Jeffries said. “We anticipate rules and regulations from the federal government in the coming months. We look forward to taking those head on and working with state and federal officials on implementation.”

The reclassification also aims to streamline how patients interact with the medical program. In Rapid City, where the medical cannabis industry has grown steadily since its inception, the federal recognition is seen as a bridge to standardizing care.

“This will be a major step forward for patients across the country as they should realize normal access to medical marijuana similar to prescription and over the counter medication,” Jeffries said.

While the new federal rules are still being finalized, the transition to Schedule III is expected to encourage more clinical research and potentially ease banking hurdles that have historically plagued the industry. Rapid City officials and business owners are now preparing for the next phase of federal oversight as the government prepares to release formal implementation guidelines later this year.