Federal vs. State Laws: Up in Smoke? Marijuana sales, primarily for medical use but also recreational sales (in some states,) have become big business and an economic boon to many states. Yet at the federal level, marijuana is still a Schedule 1 drug and illegal under the Controlled Substances Act (21U.S.C. Sec. 811). How is it possible, then, for states to cultivate and sell marijuana without federal intervention? What is the role of each of the three branches of government with regard to policing and regulating marijuana use? What has caused the national "sea change" with regard to legalizing its use?