Biden overhauls U.S. policy on marijuana, pardons prior federal offenses (updated)

Cresco Labs

06/10/2022 20:24

(Adds Progressive caucus reaction, Justice Dept statement)
    By Jeff Mason and Doina Chiacu
       WASHINGTON, Oct 6 (Reuters) - President Joe Biden took
steps to overhaul U.S. policy on marijuana on Thursday by
pardoning thousands of people with federal offenses for simple
marijuana possession and initiating a review of how the drug is
classified.
    Biden said thousands of people with prior federal
convictions could be denied employment, housing or educational
opportunities and his executive action would relieve such
"collateral" consequences.
    Biden's move fulfills a campaign promise and is likely to
please members in his left-leaning political base ahead of the
November midterm elections in which the president's fellow
Democrats are defending control of the House of Representatives
and Senate.
    "Too many lives have been upended because of our failed
approach to marijuana. It's time that we right these wrongs,"
Biden said.
    He urged state governors to follow suit.
    "Just as no one should be in a federal prison solely due to
the possession of marijuana, no one should be in a local jail or
state prison for that reason, either," Biden said.
    Shares of cannabis growers and sellers surged following
Biden's comments, with Tilray Brands  TLRY.O  and Canopy Growth
 WEED.TO  both jumping more than 20%.
    The results of a classification review could have wide
ramifications. Presently the drug falls under the same
classification as heroin and LSD and is in a higher
classification than fentanyl and methamphetamine, the president
said.
    If marijuana classification were to ease at the federal
level, that could allow major stock exchanges to list businesses
that are in the cannabis trade, and potentially allow foreign
companies to begin selling their products in the United States.
    While many states have legalized the medical or recreational
use of cannabis, the substance remains illegal under U.S.
federal law, forcing most major banks to deny their services to
cannabis-related businesses.
    The issue has forced U.S. marijuana companies to trade their
shares over the counter or by listing in Canada, with the Nasdaq
and New York Stock Exchange prohibited from listing them.
    The president's action drew praise from some members of
Congress.
    “The Progressive Caucus applauds this action by President
Biden today to advance criminal and racial justice," said
Representative Pramila Jayapal, who chairs a group of
left-leaning lawmakers, in a statement.
    Biden said he had directed Attorney General Merrick Garland
to develop an "administrative process" to issue certificates of
pardon to those who are eligible.
    “The Justice Department will expeditiously administer the
President’s proclamation, which pardons individuals who engaged
in simple possession of marijuana, restoring political, civil,
and other rights to those convicted of that offense," the
department said in a statement.
    Biden said certain rules needed to stay in place even as
regulations around the country loosened.
    "Finally, even as federal and state regulation of marijuana
changes, important limitations on trafficking, marketing, and
under-age sales should stay in place," Biden said.
 (Reporting by Jeff Mason and Doina Chiacu; additional reporting
by Noel Randewich, Shariq Khan and Richard Cowan; Editing by
Rosalba O'Brien and Bill Berkrot)
 ((doina.chiacu@thomsonreuters.com; 202-898-8322;))