“Cannabis is currently a Schedule 1 drug which includes drugs like heroin and LSD. The Biden administration is moving it to Schedule 3 which includes things like Tylenol with Codeine and steroids,” explains Stanton.
“This is historic, because it is the first time since the Controlled Substances Act was enacted more than 50 years ago that a drug has been reclassified,” says Stanton.
“This allows major changes for cannabis including allowing the drug to be studied and researched with federal dollars, opening the door for more mainstream investment from pharmaceutical companies or alcohol and beverage companies,” explains Stanton.
“For the industry, it eliminates the significant tax burden of the IRS Code Section 280E which prohibits cannabis companies from deducting what would otherwise be ordinary business expenses. For the industry this alone is an incredible benefit,” says Stanton.
“It should reduce the black market and ensure that no one goes to jail for possession of cannabis. Thus, a real social justice benefit,” explains Stanton.
“This is not the end of the tunnel though. The DEA’s proposed rule change will have to go through a public review which could lead to a change in the rescheduling. Congress could also weigh in and alter the course. There could also be litigation,” says Stanton.
“This rescheduling effort does not undo the need for Congress to act on bills like the Safer Banking Act or the HOPE Act (expunging criminal records for nonviolent cannabis offenses),” explains Stanton.
“In short, it is a momentous day but lots more to come,” concludes Stanton.
