Biden’s Greenlight: What To Know About Fed-Regulated Marijuana, Markets, Legal Circuits And Compliance
In an exclusive interview with Benzinga Cannabis, Aaron Bloom, an attorney and CEO of DocMJ, a multistate cannabis clinic, delved into the legal steps for rescheduling cannabis to Schedule III in the Controlled Substances Act, the possibility of categorizing cannabis under different regulatory frameworks, and how these changes may bring both challenges and opportunities for informed investors.
“Many practices that are common in the cannabis industry today, will become illegal under a federally regulated cannabis framework,” Bloom explained.
Bureaucratic Road Map For Rescheduling Cannabis
The DEA’s decision to reschedule cannabis from Schedule I to Schedule III marks a significant federal policy shift. Analysts predict tax changes, including the removal of IRS code 280e, which would allow cannabis companies to deduct their expenses like normal companies and potentially save them millions of dollars. Companies like Trulieve (OTCQX: TCNNF) could see a 500% increase in its cash flow.
Additionally, DEA-authorized studies on cannabis benefits will legally spearhead research and development. New federal regulations will detail how practitioners can interact with cannabis, including prescribing and dispensing protocols.
Once rescheduled, the DEA will release regulations outlining what practitioners can and cannot do. “Right now, there are no regulations,” Bloom noted. These new rules will likely mirror those for other Schedule III drugs, requiring written prescriptions and controlled distribution by licensed pharmacists.
Public Comment And Legal Challenges
The process will include public comment periods and hearings. “Regulations will be posted for comment, followed by hearings,” Bloom said. This phase may also provoke lawsuits challenging the new regulations. If regulations are not completed before a potential change in administration, their future will likely be uncertain.
Simultaneous Rescheduling And Regulation
The rescheduling and new regulations are expected to occur simultaneously. “It will be rescheduled with the regulations,” Bloom confirmed. This synchronized approach aims to ensure that once …