STATES 2.0 Act: A New Dawn For Federal Cannabis Policy?
The federal criminalization of marijuana has evidently failed, with recent reports indicating that 72% of the marijuana market in the U.S. remains illicit. Facing widespread nullification of federal marijuana prohibition, popular support for legalization and the accompanying excise revenues, policymakers are continue to consider reforms. As the Tax Foundation reported, members of Congress introduced the STATES 2.0 Act last December. The bill would remove marijuana from the Controlled Substances Act, federally legalize its sale and use and permit interstate commerce.
New Framework For Cannabis Regulation
The States Act aims to remove marijuana prohibition from federal prohibition, allowing states to independently decide its status within their borders. This aligns with the reality that states have been making these decisions for some time now. However, existing legal markets are burdened by federal prohibition and punitive taxation, keeping prices substantially higher than those in illicit markets. This unintended consequence has bolstered black markets, even in states with legal cannabis.
The proposed legislation would shift regulatory responsibilities from the Drug Enforcement Administration (DEA) to the Food and Drug …