Federal Cannabis Shift: ‘The Industry Is Projected To Surpass $100 Billion By 2030,’ Says Expert
In a historic policy shift, the Justice Department has proposed reclassifying marijuana from a Schedule I to a Schedule III substance. This decision, if finalized, would acknowledge the medical benefits of cannabis and categorize it with drugs like ketamine and some anabolic steroids. However, it does not legalize marijuana for recreational use.
This reclassification follows President Joe Biden‘s call to review cannabis’s status in 2022. The change aims to address longstanding inequities and could significantly impact the cannabis industry, particularly regarding compliance and regulatory requirements for financial institutions.
Challenges and Opportunities for Financial Institutions
Kevin Hart, founder & CEO of Green Check Verified, a prominent figure in the cannabis community and an upcoming speaker at the Benzinga Cannabis Capital Conference, provided insights into these changes. In an exclusive interview, Hart told Benzinga that federal involvement would likely increase regulatory complexity. “We can expect more, not less, rules and regulations around the cannabis supply chain,” he noted. This additional layer of federal compliance will add to the existing state regulations for both medical and adult-use cannabis.
Hart highlighted the challenges financial institutions will face under the new Schedule III classification. They must adapt their compliance programs to accommodate new regulations and ensure their systems are ready for the changes.
“Financial institutions are going to want to know how this impacts their compliance programs,” Hart explained. “Who …