Cannabis Rescheduling vs. De-scheduling
“To be, or not to be, that is the question” — Hamlet
For years, our industry has advocated for reevaluating how cannabis is viewed legally, socially, and as a viable business segment. With a growing political appetite, rescheduling cannabis seems likely and there are even recommendations for de-scheduling it altogether. This seemed like an ideal outcome when we started High Bluff Group, but is it really?
Business leaders in the cannabis industry express concerns that while rescheduling might benefit those who have navigated taxes and regulations to maintain positive cash flow, de-scheduling could spell disaster. The entry of large corporations could lead to market consolidation, driving down margins and flooding the market with low-quality products. This potential “Uber Weed Delivery” scenario could harm smaller operators significantly.
According to a Pew Research Center study, about 91% of U.S. adults say either that marijuana should be legal for medical and recreational use (60%) or that it should be legal for medical use only (31%). This broad support shows significant public backing, yet de-scheduling could lead to increased federal regulation in advertising, packaging and distribution, adding more bureaucracy to an industry struggling with these issues already. Moreover, states like California, which have heavily invested in the cannabis sector, could lose regulatory autonomy.
The debate between Cannabis Rescheduling vs. De-scheduling is complex. While rescheduling would categorize cannabis within the medicinal realm, potentially enhancing funding for research and new uses, it might not sufficiently address the stigma or investment concerns tied to cannabis.
Initially, I was optimistic about rescheduling, but the possible ramifications of de-scheduling have left me cautious. As Shakespeare’s Hamlet implores us to think, are we better off being paralyzed with fear and not making an effort, or should we be inspired to lead?
For more insights and expert guidance on navigating these changes in the cannabis industry, visit us at High Bluff Group
ABOUT AUTHOR
MICHAEL LARKINS, MANAGING PARTNER AT HIGH BLUFF GROUP
