Rescheduling is just the beginning; further reforms may be necessary for full federal legalization.
As Election Day approaches, the cannabis industry is closely watching Kamala Harris's pro-legalization stance, since the Democratic nominee is the first presidential candidate on a ticket explicitly advocating for marijuana reform.
Pablo Zuanic, a highly regarded equity analyst in the cannabis space, shared his thoughts on the potential impact of Harris's stance on federal policy and the future of cannabis regulation.
According to Zuanic, Vice President Harris's support for marijuana reform goes back several years.
"In the past, in her campaign, and as recently as in March, in the White House, she told people she wanted to legalize marijuana or deschedule marijuana," he said. If elected, Zuanic explained, Harris could continue the Biden administration's work on rescheduling but also take it a step further. "If she's elected president, she could double the ante and fully legalize cannabis at the federal level," he added.
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Challenges And Delays
Although the Biden administration has taken steps to initiate the rescheduling process, Zuanic remains cautious about the timeline for completion. The process, which started in October 2022, has encountered delays as officials carefully follow the requirements outlined in the Controlled Substances Act. Zuanic noted that the goal is to make the ruling "bulletproof" to withstand potential legal challenges.
"All scenarios are on the table," he explained. "I believe a scenario, if I have to opine, is that this nugget does not get done on time and that Vice President Harris wins the election and gets this implemented in her first term," he said.
The Path to Full Legalization
While many view rescheduling as an essential first step toward federal legalization, Zuanic pointed out that it may not be the final solution. Rescheduling alone does not fully legalize cannabis, leaving a gap between state and federal regulations. "This rescheduling, the way it's been designed, does not fairly legalize cannabis," he stated. The tension between state rules and federal laws will persist even after rescheduling, making further legislative action necessary.
Zuanic believes that if Harris is elected, she could address this issue directly. "She could appoint a new DEA administrator, which could speed up the process," he said, adding that further reforms, such as full legalization, might come during Harris's potential second term.
What's Next for Cannabis Policy?
The future of federal cannabis policy remains uncertain, but Zuanic emphasized that rescheduling is just the beginning. He noted that while some expect rescheduling to bring about immediate changes -- such as better access to banking services -- other reforms, like the Safe Banking Act, might be needed to integrate cannabis into the U.S. financial system fully.
"Yes, there will be some form of accompanying memorandum at some point that would make it easier for banks to operate in the industry and for U.S. exchanges to uplift [cannabis stocks]," Zuanic said. However, the timing of such changes remains unclear, especially with the possibility of delays in the rescheduling process. "We have to wait and see for that, sometime in 2025," he concluded.
Cannabis rescheduling seems to be right around the corner. Want to understand what this means for the future of the industry? Hear directly from top executives, investors, advocates, and policymakers at the 19th Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.
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