On August 29, 2023, the U.S. Department of Health and Human Services (HHS) recommended the DEA reclassify marijuana and move it from Schedule I to Schedule III, following a review by the Food and Drug Administration (FDA), as part of a process initiated by President Joe Biden in 2022.
"When President Biden ordered something here, we thought it would take a really long amount of time. But this is a big positive moment for cannabis as an industry as a whole," said George Archos, CEO of Verano Holdings Corp. VRNOF.
Want to talk with the team of this leading multi-state cannabis company? Darren Weiss, Verano’s president, and Aaron Miles CIO are featured speakers at the upcoming Benzinga Cannabis Capital Conference in Chicago. Mark your calendar for September 27 and 28.
What’s New?
A Congressional Research Service (CRS) report suggested the DEA may lean towards the HHS's suggestion, given the agency's historical alignment with the HHS recommendations.
A precedent exists: in 1999, Marinol, a synthetic cannabinoid, was moved to Schedule III based on HHS's advice, reported Marijuana Moment.
Implications For Federal Policies & State Medical Marijuana Initiatives: About The Report
Taxes & Business: The change may lead to federal tax benefits for marijuana businesses and remove DEA production quotas, promoting business growth.
Medical Marijuana: Transition to Schedule III could legally sanction medical marijuana's manufacture, distribution and possession, though potential FDA approval and DEA licenses could be challenges.
Regulatory Oversight: The FDA's authority over medical marijuana may grow, necessitating increased resources for standard maintenance.
Rights & Eligibility: Medical cannabis users could have expanded rights, affecting areas from gun ownership to visa eligibility.
"Those who use medical marijuana lawfully may now be eligible to access public housing, obtain immigrant and nonimmigrant visas, and purchase and possess firearms. Those who use marijuana recreationally would still face restrictions in these areas," stated the CRS.
State Implications
Leaders such as Colorado Gov. Jared Polis emphasized the need for clarity. State marijuana initiatives might require realignment with revised CSA guidelines, per the report.
Research & Development: A significant upside, as indicated by CRS, is the bolstering of marijuana research opportunities. Removal of DEA quotas could spur detailed studies on the plant's properties.
Congressional Direction: While the DEA might heed the HHS recommendation, Congress has the final decision. They can maintain the current status, reclassify, delist marijuana, or explore other classifications.
In light of these developments, the Benzinga Cannabis Capital Conference on September 27-28 in Chicago aims to address this evolving regulatory framework. All information is available at bzcannabis.com
Read Next: Join The Cannabis Elite Circle: Here's How To Access The Top Private Dealmaking Room In The Industry
Image by El Planteo
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!