Rescheduling Marijuana: How DOJ’s Action Could Transform The Industry
By Todd Harrison via Cannabis Confidential (May 17)
The Justice Department formally started the process of classifying marijuana as a less dangerous substance, moving toward a historic change in US drug policy.
The agency submitted a rulemaking notice to shift cannabis’ legal status to Schedule III from Schedule I. A 60-day public comment period will now begin, after which the DEA and DOJ will make a decision on how and when to stick the final landing.
Read the Room
Nearly 7 out of every 10 voters, including a majority of Republicans, support legalizing cannabis, according to a Fox News poll that found that 69% of registered voters in the U.S. want to end prohibition altogether (45% of which “strongly” favor the reform).
There’s support across the political and demographic spectrum, too. Dems are most likely to back the policy at 81% but 55% of GOP voters and 65% of independents are also on board.
Eurovision
Medical cannabis is taking over Europe as well, with efforts to decriminalize cannabis in numerous countries at local levels. Similar to what took place in the U.S., European nations are legalizing medical or adult-use cannabis through a patchwork of new laws.
Of the 27 EU countries—Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden—only six (Bulgaria, Hungary, Latvia, Lithuania, Slovakia and Sweden) are still affixed to their prohibitionist roots.
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Research Assistant
If marijuana is rescheduled to a Schedule III substance, it won’t change laws regulating cannabis research but the demand for research of the plant and cannabis for research purposes will grow, legal experts and marijuana producers say.
“It’ll make researchers within universities or hospitals and private companies better armed to say, ‘We should be doing this, and we can be doing this.’”
We believe they’ll be absolutely amazed at what they find.
Stocks & Stuff
It was another whippy day in Cannaland as the ETF spend the session in search of it’s special purpose as the clock ran out on May paper. U.S. cannabis ETF MSOS (NYSE: MSOS) finished the session -2% to end this five-session set with a 3.5% gain.
Below, we’ll dive into the rulemaking process and timing thereof, digest the interplay bw the structural impediments and technical agendas, recap best-in-breed earnings, synthesize the well-placed aggravation and spy the upside of anger.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $175M/ $116M
DOJ Advances Marijuana Rescheduling Plan Favored by Biden
Biden endorses cannabis reclassification, slamming ‘failed approach’
Twenty-One of 27 European Union Countries Legalized Medical Cannabis
Why rescheduling could be boon to cannabis research
GOP House Leaders Propose Reducing Regulatory Barriers For Some Hemp Growers In Draft Farm Bill
Ohio gears up for legal marijuana sales for adult use
NJ Senate Committee Passes Bill to Regulate Intoxicating hemp
Nebraska MMJ advocates surpass one of two key signature hurdles
Wild West of Weed: Oklahoma Struggles to Regulate Booming MMJ Industry
Industry Headlines
Tilray to sell a large block of stock as it preps for cannabis reclassification
Cannabis reclassification a real milestone for industry, says Boris Jordan
Village Farms Considering Strategies to Enter Legal US Marijuana Market
Pregame (written 7:15AM)
I was planning on taking today off to celebrate our daughter but old habits die hard so when I’m up at 5AM, scanning the world for cannabis news, it almost seems like a waste not to share the observations, especially now.
So, a few things:
Yesterday’s DOJ news was “monumental,” to quote President Biden, but it was still an imperfect catalyst for a few reasons:
It was already out there. We talked about how the White House had postured publicly and privately that SIII was fait accompli and two weeks ago we got that short-lived spike on reports this was coming. In other words, there was stock for sale on the news, on top of the stock people didn’t get off on the last spike.
Equilibriums remain vulnerable until the structural impediments …