The news earlier this week, courtesy of a report by Bloomberg News, that the Health and Human Services is recommending that the Drug Enforcement Agency reclassify marijuana from its status as a Schedule 1 narcotic to a lower-risk category, is sending ripple waves of excitement throughout the legal cannabis community. If this does come to pass, the milestone move could have a massive impact on the market. Could this lead to the passage of the stalemated Congressional bill, the Safe Banking Act, which would not punish banks for doing business with cannabis companies? Or, could it even go a step further and lead to the holy grail for all—federal legalization?
Bri Padilla, executive director of The Chamber of Cannabis, a nonprofit organization for Nevada cannabis professionals, offers her insights while also discussing the implications of rescheduling and counterintuitively, how it could negatively impact the medical cannabis community.
This Q&A was edited for conciseness and clarity.
Iris Dorbian: Putting your feelers on, what do you feel the likelihood is that cannabis will be reclassified?
Bri Padilla: It’s a compelling juncture for the industry, and there seems to be a growing momentum towards the reclassification of cannabis. With evolving attitudes and increasing recognition of its potential benefits, the likelihood does appear to be on the rise, but the complex regulatory landscape makes it challenging to predict with certainty.
Dorbian: What’s in its favor and what’s against it, aside from the federal illegality?
Padilla: On the positive side, there’s mounting scientific evidence of cannabis’s medical applications and the economic potential it holds. The changing public perception and the potential for job creation are strong arguments in favor. On the flip side, historical stigma and concerns about unintended consequences could pose challenges. Also, navigating the delicate balance between state and federal regulations remains a significant obstacle.
Dorbian: How would this impact the cannabis community at large?
Padilla: It would be substantial. Rescheduling could bring more legitimacy, enabling greater research and development, and fostering a more robust industry.
While the industry and the patient community have been unified in their demand that cannabis not be considered a Schedule 1 substance, where it falls on the scheduled classifications drug list is going to be a matter that will likely be debated for some time, and it should be.
A change to Schedule 3 could drastically shift the access of cannabis in a way that could potentially harm the patient-community, especially those patients who for whatever reason have been unable or unwilling to register for a cannabis prescription. The conversation around de-scheduling is long overdue, but what the industry and community really need to consider are the ramifications of rescheduling (and where to reschedule), as we move forward.
Dorbian: Could this lead to the passage of the Safe Banking Act or at least solve the perennial cannabis banking problem? Or will the community need federal legalization for that?
Padilla: Rescheduling might indeed pave the way for the passage of the Safe Banking Act, offering a partial solution to the banking problem that has plagued the industry. While federal legalization would provide the most comprehensive remedy, rescheduling could serve as an intermediate step to ease financial hurdles for cannabis businesses, allowing them to operate more transparently within the existing financial system.
Dorbian: Also, if cannabis is rescheduled, what are your thoughts on the timeline for federal legalization? Could it happen a lot sooner than we think or is there still a long road ahead?
Padilla: The timeline for federal legalization is a complex matter. While rescheduling could potentially expedite the process by reducing some barriers, a complete shift to federal legalization involves intricate legal, social, and political considerations. It’s tempting to hope for a swift resolution, but the reality likely involves a mix of incremental changes and potential hurdles that could stretch the timeline.
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