The Department of Health and Human Services (HHS) has made a historic recommendation to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act. While it won’t immediately impact the cannabis industry, this move, initiated by President Biden, could signal significant changes on the horizon.
If the Drug Enforcement Agency (DEA) follows HHS’ recommendation, it would eliminate Section 280e of the IRS tax code for cannabis businesses, a major financial burden. It could also stimulate lending in the industry, lowering interest rates and allowing for more growth opportunities.
Rescheduling might also encourage exchanges like the Toronto Stock Exchange (TSX) to consider listing U.S.-based cannabis companies, potentially revitalizing the market.
Furthermore, the HHS recommendation could prompt Congress to take further action, with potential benefits for businesses and consumers. While the exact implications remain uncertain, this move brings the U.S. closer to a post-prohibition reality, particularly significant for the future of hemp and CBD-based case studies in the country.
While the exact implications of rescheduling remain uncertain, the HHS announcement has been welcomed by industry players and advocates alike, bringing the United States one step closer to a post-prohibition era. This development holds particular promise for the future of hemp and CBD-based case studies in the U.S., potentially opening up new opportunities and removing obstacles that have hindered the industry’s growth.
Source: Forbes