Bruce Linton On Vaping Regulations That Could Be 'Better For Public Safety'

A seventh person has died in the U.S. from what appears to vaping-related causes — but a growing regulatory pushback could have the opposite effect of helping consumers, according to ex-Canopy Growth Corp CGC CEO Bruce Linton.

What Happened

If state or federal authorities start cracking down on the vaping industry, it could make dangerous products more prevalent in the market, Linton said on CNBC's "Squawk Box" Tuesday.

"My worry is that when regulators say we're going to try to stop vaping, what really is going to happen is more of those products that don't come from a regulated source will get in the market." 

Vape products from questionable sources can contain vitamin E and other chemicals that pose health problems when heated to a certain level in a vape.

Regulators shouldn't be "cracking down" on vaping, Linton said. Instead, they can play a role in dictating aspects like the temperature at which a vape heats up, he said.

This is a role the federal government can play, and it is likely the U.S. Food and Drug Administration has already looked into this, he said. 

"The more you regulate this area and the less you ignore it, it's bad for criminals, better for public safety," Linton said.

Why It's Important

Good companies prefer more rules, and less capable companies will disappear from the market, the former cannabis CEO said. 

Companies that are "science-driven" and "regulation strong" are also appreciated by the capital markets, he said. 

What's Next

The Trump administration appears poised to ban flavored e-cigarettes to help stop teens from vaping, and former FDA commission Scott Gottlieb told CNBC there is a case for a "federal reckoning."

"These are falling within a regulatory gap," Gottlieb told CNBC a week ago.

"People who are vaping nicotine and having these reactions probably are vaping illegal products that are counterfeit."

Related Links:

Bruce Linton Joins Cannabis Pet Market, Becomes Special Advisor To Better Choice Company

The Dark Truth Behind The Recent Outbreak Of Vaping Related Illnesses