In a pivotal moment for the American cannabis sector, the U.S. Department of Health and Human Services (HHS) has proposed a reclassification of cannabis to the DEA. This could shift cannabis from its current Schedule I status, bringing potential upheaval in the perception and market dynamics of the plant.
At a recent virtual event hosted by Benzinga's Javier Hasse and led by VP of Virtual Events Matt Steinmetz under the sponsorship of FundCanna, industry experts delved into the profound implications of this recommendation, tracing the trajectory of cannabis regulation.
If you're keen to delve deeper into these topics, don't miss the upcoming Benzinga Cannabis Capital Conference in Chicago. Mark your calendar for September 27-28.
See Also: Trulieve CEO: Federal Rescheduling Could Change Heavy Tax Burden For Cannabis Industry
‘Legalization Means Regulation’
"Legalization means regulation, right? So when you say legalize, what you're saying is regulate," noted webinar moderator and Benzinga's head of cannabis content Javier Hasse.
Looking back, David Traylor, Sr. managing director at Golden Eagle Partners, highlighted the U.N. single convention, the inception of the Controlled Substance Act (CSA), and current DEA rulings. "The Shafer Commission once deemed marijuana as not particularly harmful," addressing the enduring discussion about cannabis' societal placement.
Hunter Land, Ph.D. VP of Research & Development at Biopharmaceutical Research Company brought a scientific perspective. "Unlike most scheduled substances, which are primarily one chemical entity, cannabis has potentially over 600 biologically active components.” He also stressed the need to reexamine how the "accepted medical use" of cannabis is established.
Why Controlled? Navigating Cannabis' Complex Past & Future
Cannabis editor and writer Maureen Meehan's question, which Hasse relayed to the panel, struck a resonating chord: Why is cannabis even considered a controlled substance?
Land responded, referencing Epidiolex studies, "Even when CBD was rescheduled, it was Schedule five... right now we do know that there's abuse potential." He alluded to risks, especially to developing young brains, as underlining reasons for the plant's categorization.
Eric Berlin, partner and co-head of the Cannabis Group Dentons highlighted the racial inclinations in historical cannabis laws. Reflecting on state decisions, he said, "It's really quite disturbing looking back." Berlin also touched upon current politics, noting the president's interest in revisiting cannabis classification.
From a global viewpoint, David Mangone, director of policy at The Liaison Group, illustrated the U.S.'s impact on international drug agreements. "The U.S. was a driving force in crafting those treaties, particularly regarding cannabis." He also underscored the US's traditionally cautious approach to cannabis.
For researchers like Land, a move from Schedule I to III could unlock new horizons. "There are extra barriers both time and financial for Schedule I compounds. If we eliminate that, research becomes much easier."
Berlin supported this, suggesting that enhanced research might reveal more about cannabis' medicinal merits and potential hazards. "We can't discuss this without acknowledging the social justice aspects."
Legal Shifts and Financial Ripples
Stressing the legal and monetary repercussions, Mangone said that relocating to Schedule III might significantly lessen cannabis trafficking-related penalties. Moreover, this could initiate a regulatory ripple from agencies like the Environmental Protection Agency, which could be advantageous for the cannabis sector.
However, Traylor cautioned, "The DEA doesn't have to listen to the HHS recommendation..." leaving the outcome hanging in the balance.
In wrapping up the discussion and leading into the Secure and Fair Enforcement (SAFE) Banking Act, Berlin's words encapsulated the event's mood. "I don't see large enforcement against the state legal industry. And the alternative is just to allow the illicit market to continue and dominate."
He optimistically noted that as the U.S. cannabis landscape evolves, one thing is clear: momentum and potential impacts of its reclassification are undeniable.
Click HERE to watch the full webinar.
To delve deeper into this prospective transformation in cannabis policy, the Benzinga Cannabis Capital Conference in Chicago on September 27-28 is a pivotal event. All information is available at bzcannabis.com
The Federal Government Might Relax Cannabis Laws Soon: This Free Webinar Breaks Down Its Implications @Benzinga @TheLiaisonGroup @420Odysseus @Dentons @DentonsCanada @JasonRaznick https://t.co/YC7RhTw9dR pic.twitter.com/xlsiQijh6O
— Javier Hasse (@JavierHasse) September 13, 2023
Image by Benzinga
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