US At Cannabis Crossroads: VP Harris Urges DEA Action, Where Do Industry Leaders Stand?

In a bold stance on U.S. cannabis policy, Vice President Kamala Harris is urging the Drug Enforcement Administration (DEA) to accelerate the process of rescheduling marijuana under the Controlled Substances Act.

Speaking at a recent White House meeting with individuals who received pardons for marijuana offenses, Harris criticized the current classification of cannabis, equating it with substances like heroin and deeming it more hazardous than fentanyl. “The classification of cannabis is absurd and patently unfair,” Harris remarked, stressing the urgency for change.

The push for rescheduling comes from the recommendation of the Department of Health and Human Services (HHS) for reclassification.

This move can transform cannabis regulation and enforcement. “I’m sure DEA is working as quickly as possible and will continue to do so,” Harris stated, anticipating the forthcoming adjustments.

Industry Leaders Respond To Rescheduling Proposal

The cannabis industry, represented by figures such as George Archos, CEO of Verano Holdings Corp VRNOF, has positively embraced the HHS’s groundbreaking recommendation.

During an in-depth interview with Benzinga, Archos conveyed his enthusiasm for this pivotal shift, articulating the profound impact it could have on the entire market. 

‘This rescheduling could mean big things for the entire industry. For HHS to recommend to the DEA to make this happen is monumental for us. And we view it as a big positive step forward for all of us. And hopefully, it happens quickly. Been a long time,’ Archos elaborated, underscoring the transformative potential this moment holds for cannabis businesses and advocates alike.

Similarly, Aaron Miles, chief investment officer at Verano and an upcoming speaker at the Benzinga Cannabis Capital Conference, emphasized the company’s strategic positioning in anticipation of evolving markets. “We have been strategically building as crucial markets come online,” Miles explained, indicating a proactive approach to the anticipated regulatory changes.

As discussions about cannabis rescheduling continue, experts like Amy Rubenstein, a partner at Dentons Law Firm and another upcoming speaker at Benzinga’s Cannabis Capital Conference, offer valuable insights into the anticipated challenges and opportunities. Rubenstein and her team foresee that moving cannabis to Schedule III could ease tax burdens for cannabis businesses under IRS Code section 280E. However, it wouldn’t grant federal legality. This nuanced view underlines the complexity of navigating the cannabis regulatory framework. It underscores the importance of considering such policy shifts’ short-term and long-term effects.

Matt Darin, CEO of Curaleaf CURLF, has been a long-time supporter.

He told Benzinga in a recent interview, "This level of public support of cannabis reform at the federal level is long overdue and demonstrates a strong point of leverage for cannabis politically.

We hope that the DEA will follow President Biden's lead by rescheduling cannabis from Schedule I to Schedule III this year. Rescheduling would contribute to further de-stigmatization of the plant.”

Cannabis Reform And Public Sentiment

The call for cannabis reform aligns with the growing public support for legalization, with polls showing a 70% approval rate among Americans, which increases to 80% in younger demographics. This surge in favor reflects a broader demand for criminal justice reform and a reevaluation of cannabis laws.

Harris’s transition from a prosecutor enforcing marijuana criminalization to advocating for its federal legalization mirrors the changing perceptions towards cannabis in the U.S. With the potential rescheduling, stakeholders are weighing the implications for multi-state operators, the role of the FDA and the impact on pharmaceutical competition.

With the DEA currently reviewing the HHS recommendation, the anticipation among policymakers and industry stakeholders is palpable. The decision could mark a pivotal moment in U.S. cannabis policy, setting the stage for significant regulatory and market changes.

The Benzinga Cannabis Capital Conference is returning to Florida in a new venue in Hollywood on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn, and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars — this conference is the go-to event of the year for the cannabis world. Get your tickets now on bzcannabis.com – Prices will increase very soon!

Kamala Harris Photo by Sheila Fitzgerald on Shutterstock