Instant View: Biden administration plans to reclassify marijuana

Acreage Holdings

30/04/2024 20:39

April 30 (Reuters) - The U.S. Justice Department on
Tuesday moved to make marijuana use a less serious federal
crime, taking a step to reclassify the drug out of a category
that includes heroin in a shift that, once completed, would
shake up cannabis policy nationwide.
    Below are some reactions from industry insiders and experts.
    
    David Goubert, President & CEO of AYR Wellness
    This represents the most significant step towards federal
cannabis reform in U.S. history and will provide much-needed
relief to operators of all shapes and sizes, allowing us fair
tax treatment by eliminating 280E. 
    
    Morgan Paxhia, Co-founder of Poseidon Investment Management 
    Rescheduling cannabis is a crucial move towards federal
legalization ... We anticipate a surge in liquidity as sidelined
capital enters the market, drawn by the potential for legal
businesses to thrive. With unjust taxes likely to be corrected
and a path to double-digit growth reignited the legal market
could see sustained expansion, especially with the illicit
market still multiple times larger.
    
    Matt Darin, CEO of Curaleaf
    This ruling reflects evolving attitudes towards the plant,
recognizing its well-documented therapeutic value and medicinal
applications. It is very clear that the country is ready for
this step, given that 92% of Americans are now in support of
legalization in some form. 
    
    Edward Conklin, Executive Director, US Cannabis Council
    Moving to Schedule three will boost cannabis businesses of
all sizes – particularly independent and social equity operators
– and make the regulated market much more competitive with the
larger illicit market.

    Ed Schmults, CEO of StateHouse Holdings 
    This move not only reflects a commitment to evidence-based
policymaking but also signals a recognition of the industry's
economic potential and its positive impact on job creation. 
    
    Dennis Curran, CEO & Chairman of Acreage Holdings
    Finally, cannabis operators will be able to compete and
operate on a more level playing field with other businesses in
the country. 

 (Reporting by Mrinalika Roy and Tanay Dhumal in Bengaluru;
Editing by Tasim Zahid)
 ((mrinalika.roy@thomsonreuters.com;))