Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

HHS wants to reclassify marijuana: What it means

August 31, 2023
in News
Reading Time: 4 mins read
A A
HHS wants to reclassify marijuana: What it means
0
SHARES
ShareShareShareShareShare

READ ALSO

Ukraine carries out one of largest-ever drone attacks on Moscow

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

A worker sets up Florist Farms cannabis products on the first day of legal recreational marijuana sales at the Housing Works Cannabis Co. in New York, on Thursday, Dec. 29, 2022.

Jeenah Moon | Bloomberg | Getty Images

This week, the Department of Health and Human Services asked the Drug Enforcement Agency to consider easing restrictions on marijuana upon a review of its classification under the Controlled Substances Act.

It could be a significant catalyst for an industry hemmed in by federal regulations even as legalization picks up on the state level.

Marijuana stocks were higher Wednesday on the news. Aurora Cannabis, Canopy Growth and Tilray Brands were among those to see jumps. They all jumped again Thursday.

Since the 1970s, marijuana has been listed alongside heroin and LSD as Schedule I drugs, or substances that authorities say have no accepted medical use and a high potential for abuse. Today, marijuana has remained in this category – ranking higher than fentanyl, cocaine and methamphetamine – despite there being favorable momentum for pot in scientific research and state laws.

The DEA will consider moving marijuana down to a Schedule III drug, alongside ketamine, anabolic steroids and testosterone as a substance that has moderate to low potential for physical or psychological dependence. The recommendation, however, will not de-schedule marijuana.

Cultivation, production and sales would still be in violation of federal law. Marijuana is legal in 39 states medically and 23 states recreationally.

What’s next for marijuana policy?

As part of the recommendation process, HHS conducted a scientific and medical evaluation that will help authorities come to a final decision on the matter.

A decision is likely to come before the 2024 presidential election, Roth MKM analyst Scott Fortune wrote in a Thursday note to clients.

“Historically, the DEA has never gone against a scheduling recommendation from the HHS,” Fortune added.

The DEA will consider marijuana’s reclassification under three criteria: Its potential for abuse, its potential for medical use, and the extent to which its unsafe or addictive.

Regulators have previously used the second criterion to uphold marijuana’s Schedule I classification, but doing so now may prove difficult, said Fortune, with medical marijuana programs existing in nearly 40 states across the nation.

Once the DEA comes to it decision, it will submit its own recommendation in the form of a proposal to the attorney general, who will then make his final ruling.

What does it mean for the weed industry?

If marijuana moves down to a Schedule III substance, this will effectively ease a number of restrictions holding the sector back.

The biggest boon will come in the form of new tax opportunities. Currently, enterprises dealing in Schedule I substances aren’t allowed to write expenses off their federal tax returns under an Internal Revenue Service code known as 280E.

This has been a hindrance for many cultivators, processors and retailers struggling to remain profitable as the industry sees a slowdown in sales.

“The removal of 280E will have a widespread material impact on the financial performance of every company in the industry, large and small, public and private,” said Jeff Schultz, a marijuana attorney at Foley Hoag.

HHS wants to reclassify marijuana: What it means

What’s more, the potential rescheduling will allow for interstate commerce. While many states have legal markets within their borders, transporting Schedule I substances across state lines in illegal, resulting in a glut of marijuana in some states.

The move will furthermore expand potential for research in the sector, entice investors back amid a capital crunch, and possibly return value to publicly traded marijuana stocks.

The rescheduling, however, will not free up banking services for the industry, which has been kept out of traditional banking and loans due to marijuana’s federal standing. Schedule III drugs still present a risk for banking institutions so long as federal laws remain unchanged.

A bill called the Secure and Fair Enforcement Banking Act, or SAFE, will remove this burden and is making its way through Congress.

Is federal pot legalization on the horizon?

Senate Majority Leader Chuck Schumer, D-New York, said while this is an important step forward for the industry, the end goal is ending federal prohibition.

“HHS has done the right thing and DEA should now quickly follow through on this important step to greatly reduce the harm caused by draconian marijuana laws,” Schumer said in a statement Thursday. “There is still much more that needs to be done legislatively to end the federal prohibition on cannabis and roll back the War on Drugs.”

Industry executives echoed Schumer’s feelings.

“Federal cannabis reform is long overdue, and today’s news brings us closer to the Biden administration declaring an end to the U.S. government’s failed war on cannabis,” said David Goubert, CEO of multi-state dispensary operator Ayr Wellness.

Credit: Source link

ShareTweetSendSharePin
Previous Post

NYC’s transit agency disables feature that made it possible to track subway riders

Next Post

Fintech giant Wise allowed Russia sanctions target to withdraw money

Related Posts

Ukraine carries out one of largest-ever drone attacks on Moscow
News

Ukraine carries out one of largest-ever drone attacks on Moscow

August 21, 2024
Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
News

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

August 21, 2024
Japan trade on deck, Wall Street rally pauses
News

Japan trade on deck, Wall Street rally pauses

August 21, 2024
GMC targets electric truck leadership against Tesla, Ford, Rivian
News

GMC targets electric truck leadership against Tesla, Ford, Rivian

August 21, 2024
Brits snap up lower mortgages as BOE cut boosts market
News

Brits snap up lower mortgages as BOE cut boosts market

August 20, 2024
Eli Lilly weight loss drug cuts risk of developing diabetes in trial
News

Eli Lilly weight loss drug cuts risk of developing diabetes in trial

August 20, 2024
Next Post
Fintech giant Wise allowed Russia sanctions target to withdraw money

Fintech giant Wise allowed Russia sanctions target to withdraw money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Save 0 on our favorite Ooni pizza oven, plus the rest of this week’s best tech deals

Save $150 on our favorite Ooni pizza oven, plus the rest of this week’s best tech deals

August 9, 2024
New York’s Kate Douglass enters Olympics 2024 swimming spotlight

New York’s Kate Douglass enters Olympics 2024 swimming spotlight

July 25, 2024
Marlins vs. Mets prediction: MLB odds, picks, best bets Sunday

Marlins vs. Mets prediction: MLB odds, picks, best bets Sunday

August 18, 2024
Apple’s latest iOS 18 beta walks back some changes to the redesigned Photos app

Apple’s latest iOS 18 beta walks back some changes to the redesigned Photos app

August 5, 2024
Galaxy AI, mixed reality and foldables

Galaxy AI, mixed reality and foldables

July 25, 2024
Apple releases Apple Intelligence, its long-awaited AI features

Apple releases Apple Intelligence, its long-awaited AI features

July 29, 2024
Warner Bros. Discovery sues NBA over Amazon media rights

Warner Bros. Discovery sues NBA over Amazon media rights

July 26, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • France to donate 100,000 mpox vaccines as nation prepares for outbreak at home
  • Ukraine carries out one of largest-ever drone attacks on Moscow
  • Aaron Boone on how Yankees’ catching situation will play out down stretch
  • Yankees’ DJ LeMahieu in another rut as porous season continues

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In