Why Matthew Zorn’s HHS Appointment Is a Win for Marijuana

On May 23, 2025, experienced drug policy litigator Matthew Zorn was appointed Deputy General Counsel at the U.S. Department of Health and Human Services (HHS), specifically tasked with spearheading the agency’s psychedelics policy portfolio under Secretary Robert F. Kennedy Jr.. Known internally as the “psychedelics czar,” Zorn transitions from a courtroom adversary—where he held agencies to account on marijuana rescheduling and transparency—to an insider poised to drive federal reforms. His appointment follows Kennedy’s campaign pledge to decriminalize marijuana on a federal basis, allow states to regulate it, and use tax revenues to fund addiction recovery programs—an alignment that positions Zorn to translate advocacy into actionable policy. Against a backdrop of growing bipartisan support for evidence-based drug policies, Zorn’s deep legal expertise and network across HHS, the DEA, and Congress can expedite changes long sought by cannabis businesses, investors, and patients alike.

The Cannabis Industry at a Crossroads

U.S. legal cannabis sales reached $31.4 billion in 2024, up 9.1% year-over-year, with projections estimating revenues will exceed $45.3 billion by 2025 as adult-use and medical markets expand across more states. Despite this growth, federal restrictions—ranging from Schedule I classification under the Controlled Substances Act (CSA) to Section 280E tax provisions and banking prohibitions—continue to stifle investment, constrain research, and drive operators into high-cost financing. A successful rescheduling to Schedule III would classify cannabis alongside ketamine and certain codeine products, opening traditional banking services, lowering compliance costs, and reducing investor risk, thereby unlocking the next stage of industry maturation.

Championing Transparency: FOIA and Scientific Evidence

Transparency has been a hallmark of Zorn’s impact. In September 2023, he filed a Freedom of Information Act (FOIA) lawsuit against HHS to compel release of its full 252-page scientific review recommending cannabis be moved out of Schedule I. After months of litigation, a Department of Justice official confirmed on January 11, 2024, that HHS would release the unredacted recommendation and its enclosures in full—a victory Zorn hailed as “I win” in his On Drugs newsletter. By exposing the detailed epidemiological data, risk assessments, and medical evaluations underlying the recommendation, Zorn empowered industry stakeholders with concrete scientific evidence to support rescheduling, reducing reliance on second-hand summaries and insulating future rulemaking from procedural challenges.

Litigation as a Catalyst: Shaping Rescheduling and Access

Zorn’s lawsuits have extended beyond FOIA to directly shape the rescheduling process. Representing a coalition of physicians, he sought to suspend administrative hearings that risked delaying cannabis’s move to Schedule III—highlighting procedural irregularities and pressing the DEA to adhere to statutory timelines. He also sued the DEA for violating federal public records laws by withholding communications with prohibitionist groups during the rescheduling debate, calling out undue external influence and demanding transparency in agency deliberations. These precedents demonstrate how targeted litigation can correct regulatory overreach, streamline rulemaking, and establish clear judicial oversight of agency actions.

Bridging Cannabis and Psychedelics: Expanding Therapeutic Horizons

Zorn’s advocacy spans both cannabis and psychedelics, reflecting a unified vision for plant-based therapy. He represented a Washington State doctor in federal court seeking the right to administer psilocybin for end-of-life care—efforts that, although ultimately overturned on appeal, kept psychedelic medicine at the forefront of legal and medical discourse. At HHS, Zorn will work alongside FDA leadership, which has designated research into compounds like psilocybin and ibogaine a “top priority” for addressing veteran mental health challenges. This convergence of cannabis and psychedelic policy can catalyze cross-industry clinical trials, broaden therapeutic models, and reinforce the legitimacy of botanical medicines across federal agencies.

Insider Influence: From Challenger to Change Agent

Transitioning from external litigator to Deputy General Counsel, Zorn brings an insider’s toolkit to HHS rulemaking. His deep contacts within HHS and the DEA—honed through adversarial FOIA battles and administrative litigation—now enable him to craft regulatory language, advise on statutory interpretation, and anticipate legal challenges before they arise. His reputation for science-driven advocacy will reassure cautious legislators and financial institutions that new cannabis and psychedelic regulations are grounded in empirical evidence, reducing political risk and facilitating bipartisan support.

Banking, Financial Services, and Deregulation

Restricted banking remains a critical barrier for cannabis operators. Zorn’s role at HHS places him in key interagency discussions on financial regulations, including anti-money laundering rules and tax code reform like Section 280E adjustments. His public advocacy and behind-the-scenes negotiations can accelerate Treasury and Federal Reserve reviews necessary to extend traditional banking services to cannabis businesses—a shift that would slash operational costs, streamline payroll, and enable interstate commerce under a regulated framewok

Economic Implications: Unlocking Capital and Driving Growth

Beyond sales, cannabis contributes broadly to the U.S. economy, with $115.2 billion in total economic impact reported for 2024—spanning agriculture, manufacturing, retail, and ancillary industries like logistics and technology Flowhub. Rescheduling and banking reforms would unlock billions in institutional capital, spur merger-and-acquisition activity, and pave the way for major stock exchange listings. This influx of funding can drive consolidation, support vertical integration, and fuel innovation in areas such as precision dosing, telemedicine clinics, and software platforms that optimize seed-to-sale tracking.

Forward-Looking Opportunities and Challenges

Meaningful federal reform under the CSA requires DEA to issue a proposed rule, subject it to a 60-day notice and comment period (including potential hearings), and observe a 30-day delay after the final rule’s publication before it takes effect—a timeline that typically spans 12–18 months. While rescheduling may not occur overnight or before midterm elections, Zorn’s early involvement can ensure that rule language is robust, empirically justified, and resilient to legal challenges. Simultaneously, his coordination with the VA—where Secretary Doug Collins has already touted early positive outcomes in psychedelic trials for veterans—can secure funding pathways for veteran-focused plant medicine programs, aligning HHS and VA priorities for maximum public health impact.

Conclusion

Matthew Zorn’s shift from external challenger to Deputy General Counsel at HHS represents a watershed for the marijuana industry. His proven success in forcing transparency, challenging procedural barriers, and advocating for scientific rigor equips him to accelerate cannabis rescheduling, expand medicinal access, and unlock essential banking and research pathways. For businesses, investors, and patients, Zorn’s appointment signals the dawn of a transparent, evidence-based policy era—one that promises sustainable industry growth, improved public health outcomes, and a robust federal framework for plant-based medicines.

Frequently Asked Questions

**Q1: Is this a good thing for marijuana businesses and stocks?**A: Yes. Zorn’s appointment signals impending regulatory clarity—particularly potential rescheduling to Schedule III—which should boost investor confidence, facilitate banking access, and support higher valuations for publicly traded cannabis companies.

**Q2: Will this speed up cannabis rescheduling?**A: While DEA retains final authority and the rulemaking process can take 12–18 months, Zorn’s insider role can streamline drafting and preempt legal challenges, significantly reducing procedural delays.

**Q3: What does his focus on psychedelics mean for medical marijuana?**A: Integrating cannabis and psychedelic policy under one office can foster combined clinical research and shared regulatory frameworks, reinforcing the legitimacy of plant-based therapies and expanding markets for both sectors.

**Q4: Will this help improve banking access for cannabis companies?**A: Yes. Zorn’s involvement in interagency negotiations on federal tax and banking regulations can accelerate Treasury and Fed efforts, potentially unlocking traditional financial services for licensed cannabis operators.

**Q5: How should investors and businesses prepare?**A: Engage proactively in public comment periods, support transparent data collection, and align operational standards with emerging HHS guidance to ensure compliance and capitalize on possible upcoming regulatory shifts.