Six U.S. governors urge President Biden to reclassify cannabis by year's end

Six Democratic governors, including Colorado's Jared Polis, are asking President Biden to reclassify cannabis to Schedule III by the end of the year.

This decision, following a recommendation by the U.S. Department of Commerce de la santé et des services sociaux (DHHS) and the Food and Drug Administration (FDA) dated August, would have far-reaching implications for the cannabis industry, public health and state economies. The governors argue that the re-evaluation could bring substantial economic benefits and align with the sentiments of the majority of Americans, who support the legalization of cannabis for medical or recreational purposes.

Helping the economy, public safety and health

These governors put forward various arguments to explain the need to classify cannabis in a list of controlled substances that is less restrictive than it is today.

On the one hand, they point to the economic benefits of revaluing cannabis. According to the governors, «reclassification to Schedule III will alleviate the restrictions of Section 280E of the Internal Revenue Code, allowing cannabis-related businesses to benefit from ordinary business deductions, like all other U.S. businesses.».

They estimate the potential savings of moving cannabis businesses to a standard federal tax rate of 21% at $1.8 billion a year, compared to the current effective tax rate of up to 80%.

Beyond economic considerations, the governors claim that cannabis re-evaluation would be a «great victory for the states» and can improve public health and safety. They argue that a state-regulated cannabis market is safer than other options, such as opioids, which claimed more than 80,000 lives in the US last year.

According to the governors, the cannabis consumption caused no deaths, This shows the relative safety of a regulated cannabis market. They also address concerns about unregulated cannabis, including adulterated hemp products and the presence of fentanyl in illegal cannabis [ndlr which doesn't exist], expressing the need for a comprehensive regulatory framework.

DEA's role and opposition

The period within which the Drug Enforcement Administration (DEA) will complete its reclassification review remains uncertain, but experts believe it could happen by the end of the year. In particular, the DEA is expected to follow the FDA's scientific assessment, which is based on evidence of medical use and treatment in the US, and a comparative assessment of abuse potential with other scheduled drugs. Legal experts predict that the DEA will likely align itself with the FDA's recommendation due to its scientific nature.

However, challenges lie ahead, mainly in the form of opposition from various players. Former DEA officials and White House drug czars have voiced concerns and opposed the classification change. In addition, members of Congress, including 14 Republicans, questioned the measure, stressing the need to make evidence-based decisions rather than changing them based on public opinion or state laws.

Groups such as Smart Approaches to Marijuana, former DEA directors and directors of the National Drug Policy are opposed to this measure, arguing that cannabis should remain a Schedule I drug. Their objections focus on cannabis-related disorders, the increasing concentration of THC and the lack of published double-blind studies demonstrating the safety and efficacy of cannabis.