Dorsey Whitney: It is a momentous day but lots more to come

Nicole Stanton - Partner

“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.

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Author Bios

Matt Maurer – Minden Gross
Jeff Hergot – Wildboer Dellelce LLP

Costa Rica
Tim Morales – The Cannabis Industry Association Costa Rica

Elvin Rodríguez Fabilena


Julie Godard
Carl L Rowley -Thompson Coburn LLP

Jerry Chesler – Chesler Consulting

Ian Stewart – Wilson Elser Moskowitz Edelman & Dicker LLP
Otis Felder – Wilson Elser Moskowitz Edelman & Dicker LLP
Lance Rogers – Greenspoon Marder – San Diego
Jessica McElfresh -McElfresh Law – San Diego
Tracy Gallegos – Partner – Fox Rothschild

Adam Detsky – Knight Nicastro
Dave Rodman – Dave Rodman Law Group
Peter Fendel – CMR Real Estate Network
Nate Reed – CMR Real Estate Network

Matthew Ginder – Greenspoon Marder
David C. Kotler – Cohen Kotler

William Bogot – Fox Rothschild

Valerio Romano, Attorney – VGR Law Firm, PC

Neal Gidvani – Snr Assoc: Greenspoon Marder
Phillip Silvestri – Snr Assoc: Greenspoon Marder

Tracy Gallegos – Associate Fox Rothschild

New Jersey

Matthew G. Miller – MG Miller Intellectual Property Law LLC
Daniel T. McKillop – Scarinci Hollenbeck, LLC

New York
Gregory J. Ryan, Esq. Tesser, Ryan & Rochman, LLP
Tim Nolen Tesser, Ryan & Rochman, LLP
Cadwalader, Wickersham & Taft LLP

Paul Loney & Kristie Cromwell – Loney Law Group
William Stewart – Half Baked Labs

Andrew B. Sacks – Managing Partner Sacks Weston Diamond
William Roark – Principal Hamburg, Rubin, Mullin, Maxwell & Lupin
Joshua Horn – Partner Fox Rothschild

Washington DC
Teddy Eynon – Partner Fox Rothschild