While the big wins didn’t come through, rescheduling could still be a game-changer
Cannabis Didn’t Win Big Last Night – But There’s Still Reason for Hope!
On a day like today, it’s good to remember some of the wisdom from the Rolling Stones: “You can’t always get what you want. But if you try sometimes, you just might find, you get what you need.” Last night’s election results didn’t bring the sweeping cannabis victories many had hoped for, especially in key states like Florida, North Dakota, and South Dakota. Nebraska ballot measures won overwhelming support, but the voters may be overturned by a legal technicality. So while we may not have achieved everything on our wish list, there are still important opportunities on the horizon for the cannabis industry—starting with the potential of Schedule III status in 2024-2025.
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What’s Next? The Potential of Schedule III
Although broad federal legalization looks a little murky today, there’s still reason for optimism with the possibility of cannabis being reclassified as a Schedule III substance. This change, while not full legalization, could be transformative for the industry. Here’s why Schedule III might be the cannabis industry breakthrough we need:
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Tax Relief
Reclassifying cannabis to Schedule III is expected to alleviate the burden of Section 280E, which currently prevents cannabis businesses from taking standard business deductions. Lower tax burdens would allow businesses to reinvest, grow, and operate more sustainably in an industry where every dollar counts. Keep more of your cash on the balance sheets or distribute it to owners! -
Access to Banking and Financial Services
A Schedule III classification would signal to banks and financial institutions that cannabis is a legitimate industry, opening the doors to normalized loans, credit, and banking services that most other industries rely on. This move could be a game-changer for cannabis companies looking to scale and operate more effectively, or even access to startup capital. -
Expanded Research Opportunities
Rescheduling would also open doors for greater medical research, allowing more studies to explore cannabis’s therapeutic benefits and advancing public understanding. This would lead to more medical applications and help increase acceptance across states.
The Federal Perspective: Navigating the Shifting Political Landscape
With the certainty of another Trump presidency and significant shifts in Congress, the cannabis industry will continue to be shaped by changing federal policies. While the 2024 election didn’t deliver a sweeping path to national legalization, the evolving political landscape still holds the potential to impact the cannabis industry in meaningful ways.
Looking Forward
While the road to full federal legalization remains uncertain, Schedule III status could bring important benefits to the industry. It may not be the total reform many hoped for, but it’s a crucial step that could create a more sustainable, accessible, and financially viable cannabis market.
Let’s keep pushing, continue advocating for change, and remember—you may not always get what you want, but sometimes, you just might find, you get what you need.
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