Date: May 6, 2024Attorney: Joshua S. Bauchner

Insiders from the U.S. Drug Enforcement Administration (DEA) have disclosed plans for the reclassification of marijuana. This shift in drug policy, if realized, could mark a moment in American drug regulation, with implications across various sectors.

According to information obtained by The Associated Press, the DEA is poised to reclassify marijuana, acknowledging its medical potential and recognizing its lower potential for abuse compared to substances currently classified as Schedule I drugs, such as heroin and LSD.

While this move does not equate to legalization for recreational use, it does signify a shift in perspective. The proposed reclassification, pending review by the White House Office of Management and Budget, would position marijuana as a Schedule III drug, alongside substances like ketamine and certain anabolic steroids.

Joshua S. Bauchner, Partner and Chair of the Cannabis, Hemp, and Psychedelics Practice Group at Mandelbaum Barrett PC, offers insights into the potential impact of this reclassification on the industry. Bauchner commented, “Rescheduling favors industry more than individuals. In that regard, it likely will impact the 280E tax issue which drastically impacts cannabis operator profit margins, potentially free up some commercial financing along the lines of the SAFE Bank Act and give comfort to ancillary businesses that they are not part of a criminal enterprise as, unlike Schedule I, Schedule III recognizes lawful uses.”

Despite the promising nature of this development, it is crucial to recognize that this is the first step in a process. Following OMB review, the DEA will open the proposal for public comment before finalizing the rule. Nonetheless, this move signifies a start in the ongoing evolution of cannabis policy in the United States.

The leaked information regarding the DEA’s intention to reclassify marijuana underscores a significant turning point in drug policy. While the road ahead may be long and complex, this development offers hope for those advocating for more rational approaches to cannabis regulation. Stay tuned as the story unfolds and watch this space for updates on this shift in American drug policy.

Read the full article, here: cannabislaw.report

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