'The Clock Is Ticking' For Cannabis Rescheduling, Says Former Congressman Ed Perlmutter

In a recent fireside chat hosted by Pablo Zuanic, senior equity analyst, former U.S. Rep Ed Perlmutter shared his insights on the evolving cannabis landscape.
With Congress grappling with cannabis rescheduling and banking reforms, Perlmutter's insider knowledge offers a crucial perspective for cannabis investors.

"When I first introduced this in 2013-2014, I had to deal with the chuckle factor," said Perlmutter, often hailed as the founding father of the SAFE Banking Bill.

The recent passage of a modified version, SAFER, in the Senate Banking Committee marks progress, yet the path forward remains uncertain. "We're in campaign season now," Perlmutter warned, underscoring the time constraints.

Rescheduling And Political Landscape

During the chat, Perlmutter delved into the intricate process of cannabis rescheduling initiated by President Joe Biden. The administrative procedure, bound by the Administrative Procedures Act, involves specific steps and timelines for public comment and hearings.

Perlmutter expressed optimism about Vice President Kamala Harris potentially taking the helm. Her prior sponsorship of the SAFE Banking Bill signals a strong understanding and support for cannabis reforms.

However, the upcoming elections introduce uncertainty. Perlmutter outlined a scenario where the current administration's initiatives might face challenges depending on the election outcomes.

He also highlighted the role of key players in Congress, such as Senate Majority Leader Chuck Schumer whose efforts to integrate cannabis reforms into broader legislative packages, such as the National Defense Authorization Act (NDAA) or a financial services bill could be pivotal. "If he just brought it to the floor, it would pass," Perlmutter said, reflecting on the strategic legislative maneuvers necessary to secure passage.

Perlmutter discussed the potential impact of a GOP victory, suggesting it could stall or reverse progress on cannabis reforms. He noted that if Republicans take the White House, there could be a shift in priorities away from cannabis legislation.

Also read: GOP Attorney General In Texas Loses Legal Battle Against Towns With Decriminalized Cannabis, Insists They're 'Run By Pro-Crime Extremists'

The Road Ahead

Perlmutter remains optimistic about cannabis banking reform, possibly

through a larger financial services bill incorporating cryptocurrency regulations. "There is a lot of discussion...where [banking reform] would be added to a financial services piece of legislation," he said.

Although cannabis rescheduling is in motion under the Administrative Procedures Act, the primary focus for Democrats would be winning the elections. He indicated that VP Harris and her potential running mate would prioritize election efforts, pointing out that cannabis policy is a crucial issue for many voters, enhancing its role in any forthcoming campaign strategy.

The methodical approach taken by the Biden administration ponders the question of whether rescheduling can happen in time or not. Perlmutter acknowledged the complexity of the situation. "From the White House's point of view and the HHS, they've done what they could do." He explained that the next phases are dictated by the Administrative Procedures Act, which requires specific timeframes for comments and hearings.

What If?

Perlmutter suggested a nuanced approach to cannabis policy even under conservative leadership. Discussing the hypothetical scenario of a Trump presidency, Perlmutter pointed out that despite Jeff Sessions rescinding the Cole Memo, the FinCEN guidance remained intact. "The president could have said to Secretary Mnuchin, let's get rid of the FinCEN guidance. And he didn't."

Regarding the future, Perlmutter expressed cautious optimism. "The clock is ticking, no question about it. But at least it's ticking." He highlighted that despite the lengthy process, the momentum towards rescheduling is significant and unprecedented in over five decades.

Find the complete conversation here.

These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.

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