Cannabis Industry Hit With Another Rumor

Amidst a flurry of rumors surrounding potential cannabis policy announcements from the White House, an unnamed Biden administration official has quashed speculation, stating to Marijuana Moment on Tuesday that they would “wave off” the hearsay.

The anticipation had been building within industry circles and among prominent cannabis journalists, fueled by signals indicating an impending announcement, possibly related to the ongoing review of marijuana scheduling. However, the administration source clarified that there is no such announcement imminent, dousing the flames of speculation.

The U.S. Department of Health and Human Services had previously disclosed in December its recommendation to the Drug Enforcement Administration (DEA) to shift marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA). This recommendation followed a directive from President Joe Biden in October 2022. Despite this, the unnamed official emphasized that no decision is pending currently and refrained from providing further details on the timeline.

The anticipation for a decision this year has been widely accepted among observers, given past DEA precedents and the political landscape, which could potentially favor the president ahead of the November election. However, the official’s statement underscores the uncertainty surrounding the timing and nature of any potential announcement.

The speculation had been fueled by various sources, including Adrian Snead, a partner at Porter Wright Morris & Arthur LLP, who hinted at a significant announcement via LinkedIn. Snead’s post suggested insider knowledge of a potential rescheduling decision by the DEA, though the specifics remained unclear.

“Big #cannabis announcement is coming from the Administration this week. A highly placed Administration source confirmed that there will be a big announcement regarding cannabis likely this week,” the post said.

Similarly, other figures in the cannabis space, such as John Schroyer of Green Market Report and Chris Roberts of MJ Biz Daily, had hinted at forthcoming announcements, contributing to the growing anticipation.

Congressional involvement in cannabis advocacy has further fueled speculation. Lawmakers from both parties have been actively engaged in pushing for action on cannabis scheduling matters, with some urging the DEA to go beyond rescheduling and fully remove cannabis from the CSA.

The Dales Report, which earlier confirmed that it will have Snead on livestream in their platform, meanwhile was forced to retract the announcement saying that the guest “has pulled out at this time.”

Despite the clamor for action, the DEA has reiterated its authority over the matter, stating that it will make a determination based on statutory and regulatory criteria, as well as scientific and medical evaluations. This stance has been supported by bipartisan letters from lawmakers and former officials, reflecting the complexity and contentiousness of the issue.

Public opinion regarding potential rescheduling varies, with concerns raised about its impact on the illicit market and the political implications for Biden. Surveys suggest that Biden could gain politically if marijuana is rescheduled, although the final outcome remains uncertain.

Biden has previously highlighted his administration’s efforts in this regard, including a mass pardon for federal marijuana possession offenses. Vice President Kamala Harris recently characterized this action as an example of the administration’s commitment to delivering for Americans, particularly young and Black voters.

Information for this briefing was found via Marijuana Moment and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.