Biden administration plans to reclassify marijuana, easing restrictions nationwide

Recently, the Biden administration has announced plans ease federal restrictions on Cannabis. This would be accomplished through the reclassification of the cannabis from a Schedule I substance to Schedule III under the Controlled Substances Act (CSA).

Here are some of the potential benefits of the reclassification:

Economic & Regulatory Impact:
Businesses in the cannabis industry could expect some relief from the current heavy tax regulations, specifically the removal of IRS code Section 280E, which currently prevents these businesses from deducting typical business expenses.

Medical Research & Pharmaceutical Involvement:
Reclassification would allow further research and development concerning cannabis's medical benefits. This could open the door for pharmaceutical companies to develop and distribute medical marijuana products legally in states where it is permitted.

Legal & Criminal Justice:
The reclassification might reduce the black market by aligning federal policy more closely with the existing legal markets in several states. Reduction in black market could sway opinions in the ongoing discussions about cannabis legalization at the federal level.

In short, the Biden administration will change how the federal government views cannabis: moving it from a category that deem it as having “no medical use” and “a high risk of abuse” to a category that acknowledges some medical uses and a lower risk of abuse. With less restrictions, this will create more accessibility for cannabis research, affect how businesses in the industry are taxed, and pave the way for more states to legalize cannabis.

However, this process won't happen overnight. Several administrative steps, then also involving public input, is needed before any decisions can be made. The process may face legal or legislative challenges along the way.

We here at THC are excited to see more states giving the Green Light on medical or even recreation use of Cannabis if these plans are seen through. 

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