Cannabis Rescheduling Moves Forward
After over four months of near radio silence on rescheduling following President Donald Trump’s Executive Order to expedite the rescheduling process, Trump’s Acting Attorney General Todd Blanche issued an announcement this morning saying rescheduling is, indeed, happening. At last!
For years, businesses have grappled with all the complications and burdensome headaches associated with Internal Revenue Code Section 280E, paying taxes on gross income instead of real profit. That meant even successful dispensaries were struggling just to stay afloat, but with rescheduling, this could change.
We would also more than likely see an increase in large capital investments thanks to:
- Traditional banking access
- Credit card payments
- Lower cost of capital
- Real financial infrastructure
But, we also have some tradeoffs. And there is still plenty of work to be done, however. With rescheduling we would see:
- Greater expansion of MSOs
- Increasing consolidation
- Steeper competition
- A flurry of likely unqualified businesses and speculators
- No details on criminal justice reform
What this announcement indicates is that immediately, medical companies are the biggest winners. They will see relief and be regarded as far more legitimate operators moving forward. We will need to wait for more details for other operators such as adult-use businesses following the expedited administrative hearing and the finalization of rulemaking.
“The Department of Justice is delivering on President Trump’s promise to expand Americans’ access to medical treatment options,” Blanche said. “This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information.”
In this order from Blanche, cannabis products regulated under a state’s medical cannabis license program would move to Schedule III as well as products that are approved by the Food and Drug Administration (FDA). Additionally, we will have an administrative hearing set for June 29th which will also assist with this expedited process to consider broader rescheduling efforts.
It is an exciting time to be in cannabis and an even more exciting time to get started! Now may be one of the best and most critical times to get started. Reach out to Canna Advisors today to see how we can help launch your dream business in an industry that is poised to explode.