Marijuana at the Federal Level — A Relaxation of Rules

The sale of marijuana and products based on cannabis is a $47 billion dollar a year business. Marijuana is legal for recreational use in 24 states and the District of Columbia. All but two states let it be used for some medicinal purposes.

The PIA Western Alliance states of Alaska, Arizona, California, Montana, Nevada, New Mexico, Oregon and Washington are in the legal for recreational use category.

The $47 billion a year business, however, keeps bumping heads with federal law that makes the drug illegal. That may be changing. The U.S. Department of Justice has started loosening restrictions on pot products and is going to quickly move to classify cannabis as less dangerous.

Acting Attorney General Todd Blanche said these changes are on the fast track because of an executive order from President Trump. Blanche says this will make it easier for companies to get loans for funding operations and expansion, it will ease the tax burden and drop many barriers for research.

“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,” Blanche said.

Stock in cannabis companies rose between 6% and 13% after the decision was announced.

Not everyone is happy with the decision. Many Republicans in Congress have criticized the president’s decision. Arkansas Sen. Tom Cotton led the charge with a social media post. He said easing restrictions makes it easier for Americans to abuse what he calls a still-dangerous drug.

“Marijuana today is much more potent than just ten or twenty years ago, leading to increased psychosis, anti-social behavior and fatal car crashes,” Cotton wrote. “A change to marijuana’s drug classification is a step in the wrong direction.” Source link: Insurance Journal — https://bit.ly/4t2HAPI