Benzinga - by Maureen Meehan, Benzinga Editor.
In a major development in the ongoing debate over marijuana policy, 12 Democratic state attorneys general have formally requested the Drug Enforcement Administration to move cannabis from Schedule I to Schedule III of the Controlled Substances Act.
This reclassification, long sought by advocates and recommended to the DEA by the Dept of Health and Human Services, would significantly loosen federal restrictions on the plant.
The letter, spearheaded by Colorado Attorney General Phil Weiser and sent to DEA Administrator Anne Milgram on Friday, emphasizes public safety concerns as a key motivator.
The officials argue that legal, state-regulated cannabis markets offer safer products and provide a crucial bulwark against the dangers of the illicit market and unregulated hemp products. They also reference states like Colorado, where legal marijuana sales have coincided with a dramatic decline in tobacco use.
“As state attorneys general, we have a responsibility to protect consumers and defend public safety,” they said.
“State-sanctioned cannabis markets provide access to regulated products that are clearly safer to what individuals can buy on the street—and supporting the effective operation of these regulated markets thus fits with our commitment to addressing the opioid crisis and rising overdose deaths,” the attorneys general wrote, as reported by Marijuana Moment.
Cannabis Stocks Jump On Prospect Of Rescheduling
The attorneys general highlighted the economic benefits of a regulated cannabis industry, citing billions of dollars in tax revenue generated for state coffers. Rescheduling to Schedule III would enable licensed businesses to access federal tax deductions, boosting their investments in public health and safety initiatives and further legitimizing the legal market. Indeed, cannabis stocks and ETFs jumped on the news of the 12 AGs lending their political heft to the rescheduling bid.
The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) gained 10.22% Friday, closing at $8.20.
The ETFMG Alternative Harvest ETF (NYSE: MJ) gained 4.6% to $3.41.
Public Safety
While acknowledging the risks associated with cannabis use, particularly among youth, the letter argues that rescheduling presents a "public health and safety mandate" to protect the state-regulated industry and ultimately contribute to a more accountable cannabis policy.
To Reschedule Or Not To Reschedule?
This push for rescheduling comes at a time of mixed messages from the federal government. While the HHS’s message aligns with the position of the attorneys general, the DEA has been clear to stress that it holds all the cards.
“DEA has the final authority to schedule, reschedule, or deschedule a drug under the Controlled Substances Act, after considering the relevant statutory and regulatory criteria and HHS’s scientific and medical evaluation. DEA is now conducting its review,” the DEA recently said in a letter.
Recent weeks have seen a flurry of activity on the issue, with both sides of the debate making their voices heard. A bipartisan group of 31 lawmakers urged the DEA to consider full legalization, while 29 former U.S. attorneys cautioned against any reclassification, advocating for Schedule I to remain unchanged.
What Now?
While there is still a lack of clarity as the DEA undertakes its review, a letter from the 12 attorneys general marks a significant development in the push for federal marijuana policy reform.
Photo: Benzinga edit with images by succo, mrkukuruznik5 on Pixabay.
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