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A bit of irony marijuana products. Recreational cannabis uses would
remain off limits. In December 2025, President Trump
In April 2026, at roughly the same time the federal government issued an executive order rescheduling state-licensed
moved state-approved medical marijuana products to medical marijuana sales and a hearing process to consider
Schedule III status under the Controlled Substances Act, the a broader rescheduling that would include recreational
Drug Enforcement Administration quietly launched a Medical uses.
Marijuana Dispensary Registration Portal.
In April 2026, Acting Attorney General Todd Blanche
The portal allows state-licensed medical marijuana dispensaries issued an order immediately placing marijuana products
to register with the federal government as controlled substance approved by the Food and Drug Administration and
handlers—something required for businesses dealing with products covered by state medical marijuana laws
Schedule III substances. Similar registration systems have under Schedule III of the CSA. Previously, cannabis was
long existed for pharmacies, manufacturers and distributors classified as a Schedule I substance, on par with heroin
handling regulated medications. and LSD. Schedule III drugs have legitimate medical uses
and include products like Tylenol with codeine.
For cannabis operators accustomed to functioning in legal
limbo, the launch represented a remarkable shift. A business One of the most significant benefits this change provides
category long treated by federal law as illicit was suddenly dispensary operators is that they should now be able to
being invited to register through an official DEA website. deduct business expenses on their federal tax returns,
lawyers have noted.
The irony becomes even sharper when payments enter the
picture. To complete the registration process, dispensaries
must pay a non-refundable $794 application fee. According Ryan Hamlin, CEO and co-founder of POSaBIT said he
to the DEA portal, ACH and PayPal are currently the only was encouraged by the government's actions.
accepted payment methods, although additional options may
be added later. "We continue to believe the regulatory environment
is moving in a positive direction and could ultimately
Yet PayPal's acceptable use policy prohibits transactions create meaningful opportunities for cannabis operators,
involving "controlled substances," including marijuana-related technology providers and financial services companies like
sales. So a cannabis business may be prohibited from using POSaBIT," Hamlin said in a statement accompanying the
PayPal to sell products, but apparently may use PayPal to pay firm's first quarter financial results. POSaBIT specializes
the federal government for permission to operate as a federally in POS and payment solutions for cannabis dispensaries,
recognized controlled-substance handler. and built a software platform specifically for cannabis
producers and processors.
The contradiction illustrates the broader confusion about
cannabis payments in the United States. Federal agencies are "Perhaps most importantly, industry conversations around
increasingly acknowledging state-licensed medical marijuana the future potential for broader credit card processing
businesses through taxation, regulation and registration capabilities continue to become increasingly optimistic,"
requirements, while large parts of the financial system continue Hamlin noted. "While there is still work to be done on the
treating the industry as untouchable. regulatory side, we believe the long-term direction is very
positive. If traditional credit card acceptance eventually
The situation has produced a patchwork economy filled with becomes available to the credit card industry, it would be
workarounds. Some dispensaries rely heavily on cash. Others a true game changer for both retailers and companies like
use ACH-based pay-by-bank systems or PIN debit solutions POSaBIT."
structured to resemble ATM withdrawals. Many cannabis-
related businesses still struggle to obtain traditional merchant Even with all the legal uncertainties surrounding cannabis,
accounts, loans or even basic depository services. companies serving the industry are faring well. POSaBIT,
for example, reported a 29 percent gross profit increase in
Financial institutions willing to serve the market must navigate the first quarter of 2026 over the same period last year.
complex compliance requirements, including suspicious
activity monitoring and specialized FinCEN reporting. As a Green Check Verified, which connects cannabis businesses
result, only a small percentage of U.S. banks and credit unions and cannabis-friendly FIs with a technology platform
currently work with cannabis businesses. that includes payment acceptance and advisory services,
reported more than $1.7 billion in average monthly verified
The DEA portal may seem like a small administrative detail, deposits in 2025, representing 54 percent year-over-year
but it underscores how far federal policy has drifted from the growth. It also expanded its client base of cannabis-related
realities of state-legal cannabis commerce. The government is business by 35 percent to total more than 17,500.
now collecting fees electronically from businesses that many
payment providers and financial institutions still refuse to "This is a market that is starting to normalize," said Mike
touch. Kennedy, Green Check's chief strategy officer.

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