The Marijuana CARERS Act: What You Need To Know

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Earlier this year, the
Compassionate Access Research Expansion and Respect States Act
was introduced into the senate by Senators Rand Paul, Cory Booker and Kirsten Gillibrand, in an effort to change federal rules governing marijuana and align them with state-level legalization. While the bill is likely to face stiff opposition before passing through the Senate, House of Representatives and the White House, its passage is important to investors, consumers and businesses with interests in the cannabis industry.
Reclassification
Perhaps the most important part of the CARERS Act is the reclassification of marijuana as a Schedule II drug. Currently, marijuana is on the list with heroin as a Schedule I drug with no medical uses. Marijuana possession, in the federal government's eyes, is a crime. For that reason, businesses operating within the marijuana trade have a hard time engaging with banks as the financial sector is bound by federal law. The reclassification would make it easier for banks to recognize marijuana-related companies as legitimate.
Research
The proposed bill would also allow pharmaceutical companies to conduct more in-depth research on the effects of cannabis on different ailments. Companies who are already working to develop drugs derived from marijuana like
GW PharmaceuticalsGWPH
or
Insys TherapeuticsINSY
would benefit from such a development, while big name pharma companies like
Pfizer Inc.
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PFE
or
AstraZeneca plc AZN
may also enter the marijuana market if regulations were relaxed.
Expansion
The CARERS Act would also support the expansion of the marijuana industry by making it easier for businesses in that sector to grow. Currently, marijuana-based firms are limited as they are unable to grow beyond their home-state's borders. Relaxed federal regulations could eventually lead to the legal transport of marijuana products across state boarders, thus allowing cannabis firms to conduct business in other states.
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Posted In: NewsTop StoriesMarketsCARERS Actmarijuana reform
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