VP Kamala Harris Urges DEA To Reschedule Cannabis 'As Quickly As Possible,' Calls Prohibition 'Absurd' & 'Unfair'

In a significant move to address long-standing issues within the U.S. cannabis policy, Vice President Kamala Harris called for the Drug Enforcement Administration (DEA) to expedite the rescheduling of marijuana under the Controlled Substances Act (CSA).

"I'm sure DEA is working as quickly as possible and will continue to do so, and we look forward to the product of their work," Harris said at a White House meeting with pardon recipients on Friday.

During the meeting with individuals pardoned for marijuana offenses, Harris labeled the current classification of cannabis—equivalent to heroin and considered more dangerous than fentanyl—as "absurd" and "patently unfair."

As the DEA considers the Department of Health and Human Services' recommendation to reclassify marijuana, the nation awaits a decision that could significantly alter the landscape of cannabis regulation and enforcement.

The administration's focus on cannabis reform, especially in the lead-up to the November elections, highlights the importance of this issue in the broader context of criminal justice reform and public policy.

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White House Meeting Highlights

The meeting, which also included the participation of Kentucky Governor Andy Beshear and rapper Fat Joe, aimed to delve into the experiences of those granted clemency and to spotlight injustices in federal marijuana policies.

The administration has been vocal about its stance on marijuana, advocating for the recognition of racial disparities in cannabis enforcement and emphasizing that no one should be jailed for simple possession.

Cannabis Reform And Public Sentiment

Public sentiment heavily favors the legalization of marijuana, with polling indicating that 70% of Americans support such measures, a figure that rises to 80% among those under 35.

Despite these numbers, the administration faces challenges in fully realizing its cannabis reform promises.

The process involves not only the rescheduling of marijuana but also addressing the complexities of expunging records and legal protections for those affected by previous policies.

A Shift In Cannabis Policy Perspective

VP Harris has undergone a notable evolution in her stance on cannabis policy. From a prosecutor enforcing marijuana criminalization to a U.S. Senator sponsoring a bill for its federal legalization, her journey mirrors the shifting attitudes toward cannabis in the United States.

Rescheduling Cannabis: What Are The Implications For MSOs, Tax Rule 280E, FDA And Big Pharma?

The anticipation of cannabis rescheduling and the potential repeal of Tax Rule 280E stirs a complex debate, as outlined by Zuanic and Associates. While removing Tax Rule 280E could significantly lighten the tax load for U.S. cannabis businesses, it introduces potential regulatory and market dynamics challenges. Tax Rule 280E forces cannabis companies to pay taxes on gross profits, leading to exorbitantly high effective tax rates.

The proposed shift to reschedule cannabis, making medical marijuana federally legal, appears to offer a financial reprieve but opens up a "Pandora's Box" of stricter FDA oversight and pharmaceutical industry competition. According to senior analyst Pablo Zuanic, this transition could fundamentally alter prescription practices, limit accessibility, and potentially shift the sale of medical marijuana to pharmacies.

For multi-state operators (MSOs), the benefits of alleviating the 280E tax burden through rescheduling are tempered by the possibility of increased regulation and market entry barriers.

Zuanic's report also highlights the nuanced distinction between medical and recreational cannabis, with the latter facing its own set of legal and regulatory challenges in the event of rescheduling or de-scheduling. 

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Photo: Via WikiCommons CC By Gage Skidmore from Peoria, AZ, United States of America.