DEA Veteran Warns: Biden's Plan To Reclassify Marijuana Will Empower Mexican, Chinese Cartels

Zinger Key Points
  • A DEA special agent for 32 years, Brown says the cartels will adapt to new fed regulations, ensuring their profits continue to grow.
  • Noting that cannabis sales are mostly cash-based, Brown says rescheduling will open the door to illegal cryptocurrency accounts.

Michael Brown, a DEA special agent for over 32 years, was involved in the interdiction of multi-tons of marijuana in the U.S. and abroad. He disagrees with President Biden's proposal to reclassify marijuana from its position as a Schedule I drug to a less dangerous Schedule III.

Brown argues that reclassifying marijuana will empower Mexican cartels and Chinese growers to profit by the millions.

Big Business For The Cartels

Advocates for legalizing marijuana in the U.S. argue it would increase tax revenue and disrupt Mexican cartels. Brown says not so quick.

"In fiscal year 2023, marijuana outpaced all other types of drugs seized by US Customs and Border Protection. Instead of being hamstrung by a new marijuana rule, however, the cartels will adapt their business strategy to take advantage of the rule and use it to make more money, which they will in turn use to fund the spread of deadly narcotics such as fentanyl," he wrote in a CNN opinion piece.

See Also: DEA Indicts LA-Based Sinaloa Cartel Members For Laundering $50M In Drug Money Via Underground Chinese Networks

"Based on my 32 years of experience dealing with narcotics domestically and internationally, it is clear to me that the cartels will simply continue to adapt and evolve around new federal regulations, ensuring that their profit margins continue to increase," wrote Brown, who is now the global director of counter-narcotics technology at Rigaku Analytical Devices.

Brown pointed to what many in the legal cannabis industry have come to dread: the proliferation of illicit markets.

"The cartels already have numerous illegal marijuana-growing operations on the West Coast of the U.S. that are undercutting the legal cannabis market and have been doing so for a while,” he wrote. “As cannabis becomes more in demand, the illicit market would also increase to meet what I believe will be a cannabis gold rush."

Cash-Only Equals Illegal Crypto Movement

Noting that cannabis sales are mostly cash-based, Brown says rescheduling will open the door to illegal cryptocurrency accounts. "This will enable the cartels to launder millions in untraceable cash, making it harder to regulate the industry. The cartels are already capitalizing on the crypto market to launder the proceeds of their fentanyl sales; they would most likely reinvest legal profits from marijuana sales back into their cocaine, heroin and fentanyl operations."

Brown said his views are based on what he’s learned about the Mexican cartels after decades of observing them. “It can be anticipated that they will establish front companies and invest in legal marijuana farming in states where it is legal to grow and sell marijuana, such as California and Maine, while simultaneously increasing their illegal production.”

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Photo: DEA handout

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Posted In: CannabisNewsRegulationsPoliticsLegalTop Storiescannabis reschedulingDEA Special AgentMexican cartelsMichael BrownStories That Matter
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