David Hofer

David Hofer, Managing Director

Answering Your Questions on Rescheduling Our take on 2024 Cannabis Strategic Investment Forecast

As you will see in the interview with Benzinga, as you scroll down below, we are bullish on the impact resched-uling will have on cannabis strategic investments this year. That view is reinforced by the article at this link:

https://businessofcannabis.com/80-chance-rescheduling-decision-will-be-made-in-coming-months-as-dea-raises-concerns/

At the same time, however, a recent article in the WSJ raises doubts about the DEA rescheduling at all. Our take is there are some old school folks in the DEA that are sending up a trial balloon in the press to see if their view will be accepted by the administration. I am quite sure the White House, Justice Department and HHS are letting the DEA Director know their thoughts and feelings on this. 🙂

Our understanding is that the DEA has to follow HHS s binding scientific and medical evaluation.” So, the DEA can choose which schedule but they can t say we disagree with HHS on the medical evaluation so we stand pat. The recent WSJ article implies the DEA can do what they want – that s incorrect. They must use HHS guidance. Now the DEA could decide to only put cannabis to schedule 2 not 3 but they can t ignore HHS outright and do nothing – not without some serious repercussions.

The fact that Biden brought up cannabis in the State-of-the-Union address elevates the risks to the DEA. If the DEA ignores HHS that would be without precedent and heads would roll and careers would end at the DEA. Anything could happen but we think the worst outcome would be schedule 2.

Another perspective on this is provided by Akin Gump, a well-respected DC law firm. They reference codes and talk about what the agencies can and can t do…

https://www.akingump.com/en/insights/alerts/cannabis-in-2024-hhs-rescheduling-recommendation-and-safer-banking

LET’s TALK – at the Benzinga
Cannabis Capital Conference.
SEE YOU THERE!

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