Cannabis Industry Responds To Biden's Historic State Of The Union Call For Cannabis Reform

President Joe Biden’s historic remarks about cannabis reform in Thursday’s State of the Union speech sparked widespread discussion across the industry, which many cannabis companies shared with Benzinga.

Ayr Wellness AYRWF president & CEO David Goubert

“As a member of the nation's cannabis community, AYR Wellness is encouraged by President Biden's comments addressing cannabis reform during his State of the Union speech. The U.S. has made substantial progress in overcoming the stigma surrounding cannabis, from Reefer Madness to state-led reform, to the precipice of broad federal reform today. 

We implore the Biden Administration to act on its promises and take the next step in implementing sensible federal cannabis reform.” 

Curaleaf's CURLF CEO Matt Darin

“It’s a significant moment for the country to hear cannabis rescheduling mentioned during President Biden’s State of the Union speech,” said Darin. “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, and by removing the burden of 280-E, would allow businesses to place further focus on growth and job creation. For Curaleaf, removal of 280-E could equate to savings of more than $150MM in excess tax contributions. By reducing the tax burden, cannabis businesses of all sizes will be better positioned to thrive and the true potential of this industry realized."

Poseidon Investment Management's Managing Partner Emily Paxhia

“The topics addressed in the State of the Union are a barometer for the will of the people and the voters want cannabis reform at an amazing rate of 70% per the most recent Gallup Poll. President Biden’s comments tell us that the Executive Branch is listening, we need to see this sentiment reflected through the actions of our branches of government. "

Morgan Paxhia, Poseidon Investment Management's Managing Partner

"The US is an amazing democracy with three branches of government, designed for checks and balances as envisioned by our Founding Fathers. All three branches serve at the will of the people and yet all three have failed to deliver on reform for one of the most bipartisan and unifying issues that exists in our country at this time: Cannabis reform.” 

Metrc's CEO Michael Johnson

If a move to Schedule III is adopted, it has the potential to significantly transform the cannabis industry landscape. Rescheduling removes the burden of tax provision 280E, which currently prohibits cannabis businesses from deducting a variety of business expenses on their federal tax returns. This can be the difference between companies thriving and going out of business completely

Milan Patel, CEO and co-founder of Pathogen Dx 

“Rescheduling would trigger federal regulatory agencies to apply national standards to cannabis testing, as opposed to the kaleidoscope of regulations we are currently dealing with across more than 30 states,” Patel said. “This will allow good manufacturing practices, robust quality management systems and oversight by federal regulators to come into play throughout the whole supply chain and be taken seriously, ensuring the health and safety of patients and consumers, and setting the industry on a path for longevity and success."

Matt Hawkins, founder & managing partner of Entourage Effect Capital

"Rescheduling cannabis has the potential to significantly transform the landscape for all legal operators, consumers, and patients, across the country. For one, it will remove the 280E tax burden which currently prohibits businesses in many states from deducting necessary business expenses on their federal tax returns, hindering many operators from reaching their full growth potential,” noted Hawkins. 

Image: Benzinga edit with Shutterstock photo