The News
The US Drug Enforcement Administration has started the process of reclassifying marijuana to make it available for medical use. The move follows a Department of Justice proposal and an earlier review from the Food and Drug Administration that argued in favor of regulating the drug in a similar way to medications like Tylenol. If it happens, it would bolster the nascent US cannabis industry and research into the drug’s potential.
Cannabis is currently a Schedule I drug under federal law, which puts it on a par with heroin or LSD in terms of both access to the drug and punishment for its possession and sale. If it became a Schedule III drug — placing it alongside medications like aspirin and steroids — then that would loosen red tape on the commercial and medical distribution of the drug.
Most Americans favor legalizing marijuana, and 37 states have legalized its medical use in recent years. And prominent politicians and supporters of the reform have criticized the current DEA classification as feeding over-incarceration in the US. But change could take a while: The rescheduling would be subject to a White House and public review.
SIGNALS
Biden could engage younger voters with marijuana reform
President Biden’s popularity with younger voters who identify as left-leaning isn’t assured, particularly as the war in Gaza and the campus protests continue to escalate. In turn, the administration seems to be prioritizing issues like canceling student debt and marijuana reform to try and win back young voters, Democratic strategists told the Wall Street Journal. “Social issues have a big impact on electoral politics,” one pollster said. They pointed to how the overturning of Roe v. Wade made abortion a mobilizing issue for younger voters to turn out for Democrats in 2022 and 2023. But cannabis reform would reach other demographics, too, especially among people who support criminal-justice reform.
Reclassification will help scientists study cannabis, but hurdles remain
Scientific research involving cannabis — both to understand how the drug affects the body and its potential benefits — stands to gain.. Under the current Schedule I designation, researchers must meet strict requirements to study marijuana, including storing their supplies in DEA-approved secure vaults. “It’s incredibly excessive and totally unnecessary,” one researcher told the Washington Post. But reform wouldn’t wipe every limitation away. The FDA has to decide where researchers would get their cannabis from, for example, which could mean some red tape remains, the Associated Press reported. And research could be largely limited to marijuana’s health effects, and not its recreational use, the Post reported.
Don’t expect any Wall Street listings any time soon
Rescheduling would enable more investment and open up a market historically dominated by illegal distributors. Cannabis businesses are also currently ineligible for certain tax benefits like deducting rent from their tax bills, and major credit card companies don’t support cannabis purchases in the US. As a result, dispensaries can hold on to a lot of cash and are subject to more burglaries, WIRED reported. Rescheduling it would change that dynamic. But turning a “lousy investment” into a surer bet is more difficult, The Wall Street Journal reported. As a Schedule III drug, recreational marijuana would still be illegal at the federal level, meaning major stock exchanges like the NASDAQ will likely remain reluctant to list pot companies.