DEA Shake-Up: Cannabis Industry Braces for Fallout After Terrance Cole Confirmed

The Senate’s narrow 50–47 vote has installed Terrance Cole as the new head of the DEA. Now, the cannabis sector is holding its breath.

Cole, a staunch critic of cannabis reform, takes the reins just as the DEA’s long-stalled rescheduling review faces fresh scrutiny. The timing couldn’t be more politically charged—or more economically precarious for a budding industry that’s already battling banking blocks and interstate bottlenecks.

Who Is Terrance Cole, and Why Is This a Big Deal?

Cole’s confirmation wasn’t just another political appointment. This one struck a nerve.

A year ago, Cole publicly supported an article that linked teen cannabis use with increased suicide risks—citing shaky science, critics say. He’s long argued that cannabis poses a “public health hazard,” and those views are not sitting well with industry players or reform advocates. Many had hoped the DEA’s ongoing rescheduling review, launched after Health and Human Services recommended moving cannabis from Schedule I to Schedule III, would be a step toward rationalising federal cannabis law.

Now? Not so much.

“The industry had every reason to believe the DEA was finally open to scientific evidence,” said Karen Diaz, a policy advisor at NORML. “Cole’s appointment throws that all into question.”

The rescheduling review has already been delayed six months. With Cole at the helm, insiders worry it could stall further—or worse, reverse course entirely.

Stocks Tumble, CEOs Vent

Wall Street didn’t wait to weigh in. Cannabis stocks sank sharply within hours of the confirmation vote.

Green Thumb Industries dropped 6.3%. Curaleaf fell 4.8%. Even MSOs with limited U.S. exposure weren’t spared. Traders clearly viewed Cole’s appointment as a bearish signal.

TerrAscend CEO Jason Wild didn’t hold back.

“This is like putting a climate change denier in charge of the EPA,” he told Bloomberg. “It’s hard to believe we’re still fighting this battle in 2025.”

Other industry voices echoed his sentiment:

• Kim Rivers, CEO of Trulieve, called the confirmation “a punch in the gut.”

• Ben Kovler, Green Thumb’s CEO, tweeted that the DEA “just lost all credibility.”

• Steve Hawkins, formerly of the U.S. Cannabis Council, labelled Cole “hostile to reform.”

A single sentence from a Reddit user summed it up: “We’re back to square one.”

What This Means for Rescheduling (and Why It Matters)

The cannabis rescheduling review was expected to wrap up this summer. No longer.

Under the Controlled Substances Act, the DEA has the final say on any changes to a substance’s schedule. With Cole in charge, the process may lose momentum or shift in tone. For now, it’s in limbo.

That’s bad news for the $33 billion U.S. cannabis market. Moving cannabis to Schedule III wouldn’t legalise it federally, but it would:

• Allow cannabis businesses to deduct expenses under IRS code 280E.

• Open the door to federal research grants and insurance reimbursement.

• Ease banking restrictions and improve access to credit.

It’s a long overdue fix, but now it’s in jeopardy.

One sentence in between—because this is all starting to sound a little too predictable.

Lawmakers Push Back, but Math Isn’t on Their Side

Several Democrats voiced their disapproval. But the vote fell mostly along party lines, with three moderate Democrats crossing over to confirm Cole.

Senator Cory Booker, who has championed federal reform for years, said he was “deeply disappointed” in the outcome. “This sends the wrong message at the worst possible time.”

Senator Chuck Schumer was more blunt: “We can’t afford to drag our feet on cannabis. It’s hurting small businesses. It’s hurting public trust.”

But barring a sudden shift in Senate dynamics, there’s little lawmakers can do to undo the confirmation. And so, Cole now leads an agency whose actions could make or break the next phase of cannabis reform.

Industry Lobbyists Recalibrate Strategy

The cannabis lobby is not giving up. If anything, it’s refocusing.

The National Cannabis Roundtable (NCR) has reportedly redirected funds from consumer campaigns to behind-the-scenes lobbying. “We’ll work with Cole’s office. We don’t have the luxury of sitting this out,” said an NCR spokesperson.

The American Trade Association for Cannabis and Hemp (ATACH) is also preparing a full legal brief contesting any further delays to rescheduling.

Here’s a quick table showing how different industry groups are reacting:

At least for now, there’s still a belief that regulatory progress is possible—just slower and messier than hoped.

What Comes Next?

That depends. The DEA could still approve rescheduling later this year. But it could also drag the review well into 2026—or shelve it indefinitely.

With the November election approaching, cannabis reform might resurface as a campaign issue. Some political analysts think that could accelerate action. Others aren’t so sure.

One thing’s clear: The confirmation of Terrance Cole has turned a slow-burning process into a political powder keg.