A Look At Cannabis In 2023
As new states implemented the legalization of adult-use cannabis and federal agencies continued considering a massive overhaul of the Controlled Substances Act, 2023 marked another monumental year for the cannabis industry. As 2023 comes to a close, it’s worth looking back at key events and lessons learned to anticipate what the future of the cannabis industry has in store for 2024 and beyond.
On the federal level, the Biden administration took steps to loosen restrictions on cannabis, following the President’s request last year to begin a government-wide review process on the issue.
In a letter to the Drug Enforcement Agency (DEA) in August, a top official at the Department of Health and Human Services (HHS) recommended easing regulations on cannabis, moving the drug from Schedule I to Schedule III under the Controlled Substances Act. Among other characteristics, Schedule III drugs are categorized as having “moderate to low potential for physical and psychological dependence.” HHS noted their recommendation stems from the Food and Drug Administration’s own review.
The DEA is still conducting its final review, with a decision likely to come next year. If rescheduling occurs, it will mark the most significant change in federal cannabis law in half a century. Rescheduling could open doors for more tax exemptions for cannabis businesses and cause an increase in research on the health effects of cannabis.
Although Congress failed to pass meaningful legislation on cannabis this year, momentum is building behind multiple bipartisan bills. Most notably, the SAFER Banking Act passed out of the Senate Banking Committee in September, receiving votes from both parties. The bill was originally introduced more than a decade ago and has passed the House multiple times. If signed into law, the SAFER Banking Act would extend protections to financial institutions that offer services – such as bank accounts and loans – to state-approved cannabis businesses. Under the status quo, many licensed cannabis businesses have been forced to operate as cash-only, leading to break-ins and robberies.
Meanwhile, additional states are gradually adopting cannabis legalization following recent ballot measures and legislative initiatives.
Over half of Americans now reside in states where possessing cannabis is legal. Both Maryland and Missouri carried out the electorate’s wishes and implemented statewide amendments voted on last year expanding to adult-use cannabis. In April, the Delaware legislature also approved adult-use legalization, with Governor John Carney (D) allowing the bill to become law without his signature. The only outlier from this year is Oklahoma, where voters overwhelmingly rejected legalizing adult-use cannabis back in March.
Perhaps the most groundbreaking development comes from the Buckeye State. In November, Ohio voters chose to legalize cannabis, becoming the 24th state to approve its adult use. This is notable considering Ohio had previously rejected a similar ballot measure as recently as 2015.
On the federal level, the Biden administration took steps to loosen restrictions on cannabis, following the President’s request last year to begin a government-wide review process on the issue.
In a letter to the Drug Enforcement Agency (DEA) in August, a top official at the Department of Health and Human Services (HHS) recommended easing regulations on cannabis, moving the drug from Schedule I to Schedule III under the Controlled Substances Act. Among other characteristics, Schedule III drugs are categorized as having “moderate to low potential for physical and psychological dependence.” HHS noted their recommendation stems from the Food and Drug Administration’s own review.
The DEA is still conducting its final review, with a decision likely to come next year. If rescheduling occurs, it will mark the most significant change in federal cannabis law in half a century. Rescheduling could open doors for more tax exemptions for cannabis businesses and cause an increase in research on the health effects of cannabis.
Although Congress failed to pass meaningful legislation on cannabis this year, momentum is building behind multiple bipartisan bills. Most notably, the SAFER Banking Act passed out of the Senate Banking Committee in September, receiving votes from both parties. The bill was originally introduced more than a decade ago and has passed the House multiple times. If signed into law, the SAFER Banking Act would extend protections to financial institutions that offer services – such as bank accounts and loans – to state-approved cannabis businesses. Under the status quo, many licensed cannabis businesses have been forced to operate as cash-only, leading to break-ins and robberies.
Meanwhile, additional states are gradually adopting cannabis legalization following recent ballot measures and legislative initiatives.
Over half of Americans now reside in states where possessing cannabis is legal. Both Maryland and Missouri carried out the electorate’s wishes and implemented statewide amendments voted on last year expanding to adult-use cannabis. In April, the Delaware legislature also approved adult-use legalization, with Governor John Carney (D) allowing the bill to become law without his signature. The only outlier from this year is Oklahoma, where voters overwhelmingly rejected legalizing adult-use cannabis back in March.
Perhaps the most groundbreaking development comes from the Buckeye State. In November, Ohio voters chose to legalize cannabis, becoming the 24th state to approve its adult use. This is notable considering Ohio had previously rejected a similar ballot measure as recently as 2015.