Federal government wants to regulate cannabis again

Bloomberg News has received a letter from an official at the Department of Health and Human Services (HHS) recommending that the US Drug Enforcement Agency (DEA) reclassify cannabis from a Schedule I substance to a Schedule III controlled substance under federal law . Yes, at least the federal government wants to regulate cannabis again.

Biden is finally fulfilling a commitment he made during his campaign, and early in his tenure the administration has finally made some headway, at a time when the discussion of marijuana has become mainstream.

A move to Schedule III would be hugely significant for federally legal cannabis businesses. Although a debt restructuring would not legalize state law programs at the federal level, it would remove the 280E tax burden currently imposed on such companies. It could also expand research and access to cannabis-based medicines.

This comes at a time when the cannabis industry is struggling to break out of the black market and into a mainstream industry. New York and California have significantly handicapped the industry with clumsy oversight, including a boom for over 1,500 unlicensed pharmacies in NYC alone.

Marijuana use is at an all-time high and younger people are turning off alcohol and turning to weed. Three northeastern states recently reported record sales. Massachusetts hit a record over $157 million last month. This was her third month of vigorous growth. Retailers in Maine sold $20.8 million worth of cannabis in July, and tiny Rhode Island raked in $9.5 million. Consumer demand is growing while oversight is lacking.

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The Aug. 29 memo calls on the Secretary of Health and Human Services and the Attorney General to initiate the administrative process to expeditiously review how marijuana is regulated under federal law.

The HHS recommendation now goes to the DEA, which will conduct its own scientific review. In the past, the DEA has used its own five-factor test (which differs from the HHS criteria) to determine whether or not cannabis should be reclassified. The HHS recommendation now goes to the DEA, which will conduct its own scientific review. In the past, the agency has found that cannabis does not meet any of its five criteria. Given that 40 states have legalized medical marijuana and most major medical universities have been conducting research on cannabis for some time, it would be difficult.

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Generally, Schedule III controlled substances such as anabolic steroids and weight loss supplements are FDA-approved drugs that are uniformly regulated by the federal government and are only available by prescription. This would mean stricter guidelines would apply to medical marijuana, making it easier for doctors to understand how to use it on a consistent basis and at the right dosage. The medical community would be happier if the FDA treated it similarly to prescription drugs, aspirin, and other over-the-counter drugs.

“Rescheduling will help the cannabis industry, but it will be a huge benefit for medical patients and also for a new generation that is shifting away from body-damaging alcohol to less harmful marijuana,” said Andrew Laub, managing partner at Keneh Ventures and an industry leader .

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Ultimately, an administrative judge would review the entire file and issue a decision that is actually a recommendation that the DEA administrator will consider for its final order, which is subject to appeal in court. However, there is a possibility that the DEA may enact the rule without the notice and comment period, relying on its power to directly set a new date to comply with the Single Convention. Accordingly, a rescheduling could take months or be final within weeks.

Today was a first step towards possible federal legalization.