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A 6-minute read from JB and JR
WHEN THE DEA SPEAKS
DEA restates their authority
Rescheduling soon? Rescheduling is on cannabis industry minds. We write about it all the time.
But we also know that the DEA remains the final word in rescheduling, no matter what the Department of Health and Human Services would hope.
What happened? While you were (maybe) on vacation, the DEA did acknowledge last week that they are indeed “conducting its review”.
When states snooze, they lose (cannabis consumers)
IYKYK: One of the best places to locate your cannabis retail establishment is right on the border of a state without legal cannabis. Think Nevada and Utah. Kansas and Colorado. New Mexico and Texas.
Why it matters: States that are slow-rolling their legalization efforts aren’t really stopping their residents from buying legal cannabis. They’re stopping their residents from buying legal cannabis locally.
Florida lawmaker wants to cap THC at 10%
But wait, there’s more: With a big market already in place, and a legalization measure hopefully in the works, a Republican Florida House of Representatives member Ralph Massullo introduced a bill that caps THC in would-be adult-use flower products at 10 percent. (Note: The previous sentence is not a typo.)
Why it matters? Hopefully, if you’re reading this newsletter, you know what a bad idea a 10 percent cap on THC is. Aside from the challenge of producing ultra-low THC flower, the truth is that THC sells.
Love it or hate it: Cannabis consumers often shop by potency. And if they can’t get the potency legally in Florida’s future adult-use market, consumers will certainly find high-potency flower somewhere else.
Here’s hoping cooler heads prevail in the Florida legislature.
Federal legalization doesn’t mean banking gets easier, necessarily
What’s happening? US cannabis advocates talk a ton about how federal legalization would normalize banking for cannabis businesses. Turns out, that may be optimistic.
Why it matters: Big banks didn’t get big from taking risks. And the truth is that banks, especially large national banks – whether in Canada or in the US – find the cannabis industry risky.
This is going to take time to rectify and overcome.
What’s next? All (cannabis) eyes in DC are focused on rescheduling.
The Department of Health and Human Services has recommended as much to the Drug Enforcement Agency, and the DEA is currently reviewing. (See the first story above.)
One of the big benefits of rescheduling could be normalization of banking – or at lease more normalization. But, as Canada has learned, it may not be fast, or easy.