Biden administration plans to reclassify marijuana

[May 01, 2024]  (Reuters) - The U.S. Justice Department on Tuesday moved to make marijuana use a less serious federal crime, taking a step to reclassify the drug out of a category that includes heroin in a shift that, once completed, would shake up cannabis policy nationwide.  

Marijuana plants for the adult recreational market are seen inside a greenhouse at Hepworth Farms in Milton, New York, U.S., July 15, 2022. REUTERS/Shannon Stapleton/File Photo

Below are some reactions from industry insiders and experts.

David Goubert, President & CEO of AYR Wellness

This represents the most significant step towards federal cannabis reform in U.S. history and will provide much-needed relief to operators of all shapes and sizes, allowing us fair tax treatment by eliminating 280E.

Morgan Paxhia, Co-founder of Poseidon Investment Management

Rescheduling cannabis is a crucial move towards federal legalization ... We anticipate a surge in liquidity as sidelined capital enters the market, drawn by the potential for legal businesses to thrive. With unjust taxes likely to be corrected and a path to double-digit growth reignited the legal market could see sustained expansion, especially with the illicit market still multiple times larger.

Matt Darin, CEO of Curaleaf

This ruling reflects evolving attitudes towards the plant, recognizing its well-documented therapeutic value and medicinal applications. It is very clear that the country is ready for this step, given that 92% of Americans are now in support of legalization in some form.

Edward Conklin, Executive Director, US Cannabis Council

Moving to Schedule three will boost cannabis businesses of all sizes – particularly independent and social equity operators – and make the regulated market much more competitive with the larger illicit market.

Ed Schmults, CEO of StateHouse Holdings

This move not only reflects a commitment to evidence-based policymaking but also signals a recognition of the industry's economic potential and its positive impact on job creation.

Dennis Curran, CEO & Chairman of Acreage Holdings

Finally, cannabis operators will be able to compete and operate on a more level playing field with other businesses in the country.

(Reporting by Mrinalika Roy and Tanay Dhumal in Bengaluru; Editing by Tasim Zahid)

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