Is Rescheduling a Certainty for Cannabis?
Vice President Harris Urges DEA Action on Marijuana Rescheduling Amidst Growing Market Optimism.
In a White House meeting, Vice President Kamala Harris this week urged the DEA to expedite the rescheduling of marijuana, criticizing its current Schedule 1 classification as "absurd" and "patently unfair." She put stress on the need for swift action and highlighted ongoing efforts toward rescheduling.
The presidential election is looming this year. President Biden has already canceled $5.8 billion in student debt for public service workers. Teachers, nurses, and firefighters are among those eligible for the relief, the White House said. Amidst such developments, Democrats' another agenda – the legalization of marijuana or cannabis – will now likely gain steam, according to market watchers.
Biden's Mention Fuels Market Momentum
In his State of the Union address, President Biden also lately talked about ongoing efforts to review the federal classification of marijuana, pointing to his commitment to potential reforms. This mention further boosted market optimism, with both U.S. and Canadian cannabis stocks recording rises.
Federal-State Divide on Cannabis Laws
While various states have decriminalized or legalized marijuana, federal laws continue to classify it as a Schedule 1 narcotic. Harris reaffirmed the administration's opposition to incarcerating individuals for cannabis possession.
Inside Likely Rescheduling
The potential reclassification of cannabis, as recommended by the Department of Health and Human Services, could have substantial financial implications for the industry. Removal of the 280E tax measure could result in considerable savings for companies like Curaleaf, enabling better access to banking services and fostering industry growth.
Growing Support for Legalization
Public opinion continues to favor cannabis legalization, with a record 70% of Americans supporting it according to a Gallup poll, as quoted on Morningstar. Recent legislative efforts in states like Ohio reflect a trend toward broadening the access to cannabis for adults.
