President Biden Discusses Cannabis in State of the Union Address
Cannabis rescheduling and pardons were mentioned in the address, resulting in various reactions.
On March 7th, 2024, US President Joe Biden discussed cannabis rescheduling in his State of the Union (SOTU) address (1). Specifically, he mentioned his administration’s efforts to reschedule cannabis at the federal level and the pardons issued for possession of cannabis (1). As has been previously pointed out, the pardons forgave the criminal records, but did not release anyone from prison or expunge the records (1).
In 2022, the Biden Administration initiated the process of rescheduling cannabis by requesting a review from the Department of Health and Human Services (HHS) and the Attorney General (2). In August 2023, the HHS declared their recommendation to the Drug Enforcement Administration (DEA) to reschedule cannabis from Schedule I classification under the Controlled Substances Act, to Schedule III (2). In January 2024, the HHS released a 252-page unredacted version of their review (2). The final decision on rescheduling will be made by the DEA (2). No status update was given in Biden’s speech on any new action taken by the DEA on the rescheduling of cannabis (3).
Reclassification could result in cannabis companies being able to claim standard business deductions, which they currently are not able to do due to the 280E tax measure, and also being included in the federally insured banking system (3). Both US and Canadian cannabis stocks rose after cannabis rescheduling was mentioned in the speech, according to Morningstar (3). US cannabis stocks included Curaleaf Holdings Inc., Trulieve Cannabis Corp., Green Thumb Industries Inc., Cresco Labs Inc., Verano Holdings Corp., Ayr Wellness, and TerrAscend Corp. (3). Canadian cannabis stocks included Canopy Growth Corp., Tilray Brands Inc., and Aurora Cannabis Inc. (3).
The reactions to the rescheduling of cannabis were reportedly received positively, according to Forbes, which published a collection of commentary from notable businesses after the SOTU (1). “The topics addressed in the State of the Union are a barometer for the will of the people and the voters want cannabis reform at an amazing rate of 70% per the most recent Gallup Poll,” stated Emily Paxhia, Managing Parter of Poseiden Investment Management (1). “President Biden's comments tell us that the Executive Branch is listening; we need to see this sentimented reflected through the actions of our branches of government.”
Read more on the Department of Health and Human Services agreeing with the FDA’s recommendation to reschedule cannabis as a Schedule III drug.
References
- Oleck, J. In SOTU First, Biden touted reclassifying cannabis’ federal status. the industry is pleased https://www.forbes.com/sites/joanoleck/2024/03/08/in-an-sotu-first-biden-touted-reclassifying-cannabiss-federal-status-the-industry-is-pleased/?sh=e4d5a8a3b399 (accessed Mar 8, 2024).
- Colli, M. HHS supports FDA’s call: Recommends rescheduling cannabis for medical purposes https://www.cannabissciencetech.com/view/hhs-supports-fda-s-call-recommends-rescheduling-cannabis-for-medical-purposes (accessed Mar 8, 2024).
- Gelsi, S. Cannabis stocks rise after president Biden mentions plant in state of the union speech https://www.morningstar.com/news/marketwatch/20240308370/cannabis-stocks-rise-after-president-biden-mentions-plant-in-state-of-the-union-speech (accessed Mar 8, 2024).
Ep 24, Part III: Data Transparency in Cannabis Testing with Yasha Kahn
December 26th 2024In the final part of this episode, Evan Friedmann and Yasha Kahn discuss the need for a national entity to centralize cannabis data collection, moving from snapshot data to continuous updates. They emphasize the importance of accurate lab data and adverse event tracking, suggesting QR codes on packaging to report issues. Yasha suggests harsher consequences for result manipulation and suggests collaboration between state departments and federal entities to support underfunded regulators. They also discuss the potential benefits of off-the-shelf testing and the importance of stability testing. Finally, Yasha shares his top three reading recommendations for the audience.
Ep 24, Part II: Data Transparency in Cannabis Testing with Yasha Kahn
December 12th 2024Evan Friedmann and Yasha Kahn, co-founder of MCR Labs, discuss the discrepancies between current regulations and data on mycotoxins and pesticides in cannabis products. They highlight the need for updated regulations based on new data, emphasizing the importance of accurate testing and labeling. They also discuss the issue of result manipulation, particularly in THC content, and the need for public health officials to address this. Yasha suggests making testing data public to enhance oversight and suggests a national entity to manage this data for better consistency and public safety.
