EXCLUSIVE: Cannabis Industry Leaders React To DEA’s Possible Marijuana Reclassification — ‘The First Domino To Fall’
The U.S. Drug Enforcement Administration (DEA) has announced that they will initiate steps to reclassify marijuana as a less dangerous drug, marking a substantial modification in American drug policy.
This decision, pending a review by the White House Office of Management and Budget, aims to reposition marijuana from Schedule I to Schedule III, acknowledging its medical benefits and lower potential for abuse compared to more dangerous substances.
A Move Toward Recognition and Regulation
This change is anticipated to create extensive implications across various sectors in the United States. By shifting marijuana to Schedule III, which includes drugs like ketamine and some steroids, the DEA recognizes the evolving perspectives on marijuana’s use and its medical applications.
The reclassification proposal follows a recommendation from the Health and Human Services Department and will undergo a public comment period before finalization.
The reclassification could alleviate significant financial burdens on cannabis businesses by changing how they are taxed under IRS code 280E. Currently, cannabis companies cannot deduct standard business expenses, significantly increasing their tax obligations.
This change, while not legalizing recreational use, will allow for more business deductions and lower tax rates for companies within the industry.
Reactions from Cannabis Industry Leaders
As the DEA’s reclassification proposal transitions into the public commentary phase, it is crucial to consider the perspectives of various stakeholders within the cannabis industry.
The following insights come from leaders and experts who will feature prominently at the upcoming Benzinga Cannabis Market Spotlight event in New Jersey and the Cannabis Capital Conference in Chicago.
Chirali V. Patel, Esq., managing partner at Blaze Law Firm LLC, …