How would rescheduling or descheduling marijuana affect industry?

The possible reclassification of marijuana under the federal Controlled Substances Act is sparking debate about dismantling barriers to interstate commerce and the future of the industry.While many states have created regulated marijuana markets for medical or recreational use or both, federal law remains a roadblock to nationwide market integration.

ADVERTISEMENT According to a report called “Where Will Weed Win” by Robin Goldstein, director of the Cannabis Economics Group at the University of California, Davis, the future of the industry depends on federal regulatory outcomes.The future of rescheduling or descheduling marijuana remains uncertain, with many executives and operators in the $32 billion marijuana industry wondering whether it will happen under the Trump administration.

“To deschedule, I’d be shocked if it happened in the next five years, and I’d be surprised if it happened in the next 10,” Frank Colombo, managing direct at Viridian Capital Advisors, a New York-based, cannabis-focused investment banking and data analytics firm, told MJBizDaily.Rescheduling versus descheduling Opinions vary about the impact of rescheduling or descheduling will have on the marijuana industry.

Although rescheduling – as opposed to descheduling – marijuana to Schedule 1 is unlikely to result in interstate commerce, it would grant federal tax benefits to licensed cannabis businesses under Section 280E of the Internal Revenue Code, according to Goldstein’s report.“Schedule 3 doesn’t do much beyond 280E relief,” said Avis Bulbulyan, CEO of California-based cannabis consulting firm Siva.

“280E doesn’t apply to you if you’re Schedule 1 or Schedule 2.It doesn’t change the supply chain or dynamics, but it could open opportunities for listings on stock exchanges.” If marijuana is rescheduled, it would require additional legislation, such as SAFE Banking, to enable interstate commerce, Bul...