|
Yesterday, the Department of Justice affirmed that the DEA has concurred with an HHS recommendation to move cannabis from Schedule I to Schedule III of the Controlled Substances Act. |
|
While the DEA’s opinion to reschedule cannabis fails to go far enough, it represents the first time the agency has ever abandoned its ‘Flat Earth’ position toward cannabis and acknowledged that the substance possesses legitimate therapeutic utility. Still, it continues to perpetuate the growing divide between federal marijuana laws and the marijuana legalization laws of a growing number of states. It also fails to align with public opinion, as most Americans agree that cannabis should be treated more like alcohol than like ketamine. |
|
Nonetheless, this decision marks both a symbolic and a very tangible victory. Once enacted, this move will provide immediate benefits to both the state-legal industry and cannabis consumers – such as providing lower prices for retail products and providing greater flexibility to who can legally consume cannabis and whereIdeally, it will also encourage lawmakers at the state and federal level to take further steps to amend and repeal cannabis criminalization. |
|
|
In the past hours, I have personally spoken with dozens of mainstream media outlets—including The Washington Post, The New York Times, Fox News, Voice of America, The Los Angeles Times, USA Today, Reuters, Agence France-Presse, and others—regarding the implications of this change. I can tell you firsthand that pundits, influencers, and lawmakers consider this move a seismic and long-overdue shift in federal cannabis policy. |
|
Perhaps most tellingly, our political opponents are also touting its significance, pledging to take whatever steps necessary to derail this proposed policy change. In fact, within minutes of the DEA’s announcement, a major prohibitionist group issued a press release announcing their intent to “oppose the Attorney General’s decision in the rulemaking process and to challenge any final rescheduling decision in court.” |
|
Prohibitionists are taking this stance because they know that this change may very well mark the beginning of the fall of federal cannabis prohibition. |
|
In the coming months, we anticipate high-profile battles over the fate of federal rescheduling. Some of these battles may take place in court, and others may take place in the halls of Congress. And even more battles will be waged in the court of public opinion – in newspapers, cable news, and online. You can help ensure we win this battle by chipping in right now. |
DEA to Initiate Historic Shift in Cannabis Policy
Yesterday, it was reported that the U.S. Drug Enforcement Administration (DEA) is planning to move cannabis from Schedule I status to Schedule III in the federal Controlled Substances Act. This historic move acknowledges the medical benefits of cannabis and is a significant step forward for our industry. Moving cannabis to Schedule III will lift the unfair burden of 280E on thousands of legal cannabis businesses.
The proposed change needs to be reviewed by the White House Office of Management and Budget before the DEA initiates a public comment period. Our records show that you aren’t yet part of the NCIA community and we want to take this opportunity to invite you to join our movement on this historic day. Set up a call with someone on our team to learn more about how re-rescheduling may affect your business and how you can get involved with the national reform movement.
Rescheduling is also not the end of the road. Please join us in just two weeks in Washington, D.C. for NCIA’s 12th Annual Cannabis Industry Lobby Days to help carry our message further. Lobby Days is a unique opportunity to meet with lawmakers and discuss the challenges you face operating in the legal industry and it’s a great way to connect with over 100 other like minded, politically-active cannabis professionals from across the nation. Learn more and register online today.
MCA Cannabis Community,
As advocates for progressive change in the cannabis industry, My Cannabis Accountant (MCA) acknowledges the recent announcement by the DEA to reclassify cannabis to Schedule III. This move is a significant shift in American drug policy, reflecting a growing recognition of the medical value of cannabis.
However, while it represents progress, it has complexities and potential pitfalls for our industry.
Economic Impact and Stock Volatility:
The rescheduling might prompt a bullish trend in cannabis stocks due to anticipated regulatory easing and expanded market opportunities. However, it’s important to remember that actual changes are on the horizon, not immediate. The DEA has initiated a Public Commentary Period, indicating that any regulatory implementations will take considerable time. This period of uncertainty could lead to market volatility.
The Continued Challenges Under Section 280E:
Critically, moving cannabis to Schedule III does NOT resolve all financial hurdles. Under the current federal tax code, specifically Section 280E, cannabis businesses are unfairly penalized by not being allowed to deduct ordinary business expenses. Additionally, 280E may be left up to each state to decide their own versions, complicating this even more. This issue will remain a significant barrier to operational efficiency and profitability.
Regulatory Complexity and Public Safety:
The reclassification opens a dialogue about the appropriate regulation of cannabis, similar to other Schedule III drugs, which are typically distributed through pharmacies under stringent controls. This raises questions about the future structure of cannabis sales and the ongoing discrepancies between state and federal law. MCA is particularly concerned about how these changes will safeguard public health while avoiding the regulatory capture and overreach that have hindered other industries post-prohibition.
This development should serve as a catalyst for all stakeholders in the cannabis industry to engage with policymakers and ensure that forthcoming regulations genuinely benefit public health and business operations. MCA encourages its clients and colleagues to participate in the public commentary process, lending their insights and experiences to shape a fair and effective cannabis policy landscape.
As your dedicated partner in navigating cannabis accounting and taxation, we remain committed to keeping you informed and prepared for the changes ahead. We believe in a proactive approach, leveraging our expertise to advocate for a regulatory environment that genuinely understands and facilitates the unique dynamics of the cannabis market.
Thank you for your continued trust in us. Please don’t hesitate to reach out with any questions or for further discussion on how these changes might affect your business.
Warm regards,
Harry Shurek
Founder & Managing Partner
My Cannabis Accountant – MCA
www.mycannabisaccountant.com
