May 17 :
May 16 saw the unveiling of a historic proposal to relax marijuana regulations by the US Justice Department. If passed, this rule would pave the way for additional studies into the drug's potential medical uses. This plan, which was initially revealed in April, would move cannabis from the so-called schedule one drug classification to the schedule three classification. Schedule three medicines are thought to have a moderate to low risk for physical and psychological dependence, whereas schedule one medications, like heroin, are extremely addictive and have no medical benefits.
A report by the US Food and Drug Administration stated that there is "some credible scientific support for the use of marijuana in the treatment of chronic pain, anorexia related to a medical condition, and nausea and vomiting."
"Additionally, no safety concerns were identified in the FDA’s review that would indicate that medical use of marijuana poses unacceptably high safety risks," the document states.
The Democrat vying for reelection in November, Joe Biden, made good on a campaign pledge to his left-leaning base in 2022 by initiating a review of the drug's categorization. The substance Enforcement Administration (DEA) currently classifies the substance with heroin and LSD. Tylenol with codeine and ketamine would be placed in a different group.
One way to bring federal and state cannabis regulations closer together is to reclassify marijuana. Nearly 40 states have decriminalised the substance in some way.
Although moving the drug to a different schedule would not make it legal, it would pave the way for greater investment in the cannabis industry, less criminal consequences, and more study and medical use.
May 16 saw the release of a new legal opinion in which the Justice Department's Office of Legal Counsel deemed the Drug Enforcement Administration's (DEA) long-standing method for determining a drug's permitted medical use as "impermissibly narrow."
The court went on to say that the DEA should "accord significant deference" to the medical and scientific decisions made by the US Department of Health and Human Services (HHS).
By August 2023, the assistant secretary for health at HHS had reportedly already suggested that the DEA add marijuana to schedule three. On the other hand, the DEA has not yet reached its own verdict.
Companies in the cannabis industry stand to gain a lot from a loosening of federal marijuana regulations, including easier access to capital markets and more generous tax breaks.
In addition, banks may be less stringent with their requirements. Since marijuana is still considered a Schedule I substance by the federal government, many cannabis businesses must deal only in cash since no US bank will lend to or do business with them. The Justice Department has given the public sixty days to provide feedback on the proposal. It is also possible to ask for a public hearing regarding the plan.
