The DEA has scheduled the hearing on rescheduling cannabis after the election.
Much to the chagrin of cannabis industry leaders, the Drug Enforcement Agency has pushed the hearing on rescheduling cannabis to December 2, 2024. Notably, the date follows the results of the critical U.S. Presidential election.
The delay is a blow for the industry as many were hoping for a quicker process. Rescheduling could yield positive benefits on the tax liabilities for cannabis businesses, eliminating the hated 280E, which prevents cannabis businesses from taking standard tax deductions.
Top practitioners are trying to be patient but it’s a challenge given how long they have waited for rescheduling to be on the table, let alone have it crystallize into reality.
Said David Craig, chief marketing officer of Illicit Gardens, a Missouri-based cannabis company, “It’s understandable that the DEA needs to carefully consider the complexities surrounding cannabis rescheduling, especially given the impact this decision will have on so many aspects of our society. However, it’s disappointing that reform will be delayed further. Every day that passes without rescheduling is another day that businesses, patients, and advocates face unnecessary challenges. While I respect the process, the wait for much-needed change continues to be a burden on those who rely on it.”
Pete Sahani, CEO of The Blinc Group, a New York City-based provider of cannabis vaping hardware, echoed Craig’s disappointment. However, he also noted that the delay could possibly pose negative financial repercussions. Cannabis stocks, in particular, could be adversely affected.
“For businesses, this postponement might mean continued uncertainty and stagnation in key regulatory areas such as banking, taxation, and interstate commerce,” he said. “Companies will continue to face challenges in securing financing, expanding operations, or planning long-term strategies due to the lack of federal policy clarity. Additionally, the delay may affect investment and market dynamics. Investors might be hesitant to commit capital to the cannabis sector without clearer regulatory signals, potentially slowing growth and innovation.”
Brian Vicente, founder of cannabis law firm Vicente LLP, is seemingly immune from the pervasive fear as he urges industry professionals to exercise patience.
“We’ve waited 50 years for our day in court and can wait a few more months,” he said. “Law and science are on our side and if we get a fair hearing, we win. In this process, the DEA has been presented with mountains of evidence that cannabis is a legitimate treatment for many debilitating physical and mental conditions and has a remarkable low potential for abuse. This procedural hearing will allow advocates to showcase the data and fact that strongly support moving cannabis to Schedule III.”
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