On April 30th, 2024, the Associated Press broke news of the imminent DEA rescheduling of cannabis from a Schedule I to a Schedule III substance.
I admit, I had to take a moment to make sure this news was real. I've heard many rumors. I also heard industry rumblings that there would be an announcement yesterday or today, but, with all rumors, I took them at face value.
This day, this time, it was real.
So, now what? What does this mean for cannabis? What does this mean for patients, users, and businesses? A few words come to mind.
Vindicating.
Historical.
Revolutionary.
It seems fitting that I wrote about the impending Green Revolution a mere month ago. As I stated in the post, we're reverting back to thousands of years of history and tradition. Less than 100 years ago, cannabis was listed in the US Pharmacopeia for its medical use. In 1937, it was effectively prohibited under the Marihuana Tax Act and then classified as a Schedule I narcotic in 1970 under the Controlled Substances Act, noting no medical use.
There were several factors that contributed to its prohibition. Racial and cultural biases, economic interests, public perception, and politics were among the most popular reasons. It's time to throw away the cultural biases, embrace its economic potential, educate the public, and move on from the politics of it all.
The most important thing to come of this decision is the vindication for medical marijuana patients across the country. They no longer have to plead their case because now it's recognized as the medicine it always was. Hopefully, this decision brings greater access to this plant for the number of ailments its helped support. From pain and anxiety to neurological conditions and cancer diagnoses, this plant is just getting started. Now, we will see easier access for researchers to explore benefits that we don't even know yet. The possibilities seem endless.
Also important will be the plant's economic possibilities, which is something that may have contributed to its prohibition. Its many economical uses threatened industries such as timber, cotton and pharmaceuticals. Hemp, which is a strain of the cannabis plant that has very low levels of THC (the psychoactive component in cannabis), has a wide range of uses. Hemp fiber is resistant to mold and pests, making it a formidable solution for textiles, paper, building materials, rope, paper, and more. The seeds are rich in protein, healthy fats, and minerals. Hemp-derived CBD has been used for its various medical benefits. Hemp can also be transformed to make an alternative fuel that could be more sustainable. Finally, hemp has the ability to absorb toxins from the soil, making it useful for cleaning contaminated soil and water. One can see why this plant could be seen as a threat to many industries!
From a business perspective, cannabis dispensary owners across the country are celebrating it's lift from the suppressive 280E tax code. Under this tax code, cannabis businesses couldn't make federal deductions. This will free up cash flow for reinvestment into its continued economic growth. Cannabis businesses will finally be a step closer to having the same benefits of legal businesses across the country.
The DEA decision comes after over 50 years of its Schedule I designation, making this a day that will go down in history. Activists and advocates have spent their lives supporting this cause. Many of them aren't here today to reap the rewards of their labor. It's a revolutionary time for cannabis. The Green Revolution has just begun. This is just a step, albeit in the right direction, but a step nonetheless.
Cannabis will still be illegal under federal law, so there are still many things to support for access and growth. Exports from state-to-state are still something businesses are hoping to change. Patients will still want to see if insurance companies will be adding cannabis to their list of coverage. Lastly, banking and credit cards could open up to businesses and consumers. Only time will give us answers, but today is a day of celebration for cannabis advocates.
Here are a few news sources if you'd like to read more about the DEA decision:
AP News: https://apnews.com/article/marijuana-biden-dea-criminal-justice-pot-f833a8dae6ceb31a8658a5d65832a3b8
Marijuana Moment: https://www.marijuanamoment.net/dea-agrees-to-reschedule-marijuana-under-federal-law-in-historic-move-following-biden-directed-health-agencys-recommendation/
Cannabis Business Times: https://www.cannabisbusinesstimes.com/news/dea-reschedules-cannabis-schedule-3/
