DEA Resists Marijuana Rescheduling Amidst Medical Benefits Concerns
As tension brews between the White House and the Drug Enforcement Administration (DEA) regarding the rescheduling of marijuana, a recent report by the Wall Street Journal sheds light on the resistance from some DEA officials. These officials argue that cannabis’ medicinal benefits are unproven and emphasize its potential for abuse.
Conflicting Views on Cannabis Medical Use
In January, the Department of Health and Human Services (HHS) released a comprehensive 252-page document affirming the medical utility of cannabis and suggesting its abuse potential is lower than substances in Schedules I and II. Despite this, the DEA remains skeptical of the scientific evidence provided by the HHS.
Debate over THC Potency and Agency Review
Beyond casting doubt on HHS findings, the DEA has voiced concerns over the rising potency of THC, the psychoactive component in cannabis. This skepticism has prompted speculation among advocates about the motivations behind the DEA’s cautious stance. DEA Administrator Anne Milgram has promised a thorough examination of all available research.
Implications for Cannabis Industry and Research
While rescheduling marijuana federally will not equate to legalization, it holds significant implications for the cannabis sector. Businesses could potentially access federal tax deductions currently off-limits under IRS regulations. Further, it may pave the way for increased scientific exploration of marijuana’s therapeutic properties.
Legal Wrinkles and Stock Market Impact
Notably, the HHS has sought legal counsel from the Department of Justice’s Office of Legal Counsel (OLC) to navigate potential international ramifications of rescheduling. Critics argue that reclassifying marijuana could breach international agreements, adding a layer of complexity to the process. In response to the sobering Wall Street Journal report, cannabis stocks experienced a downturn.
Analyst Insights and Market Reaction
In light of these developments, shares of major cannabis companies like Curaleaf Holdings Inc and Green Thumb Industries Inc experienced fluctuations, settling at altered values after the volatile trading period. Alliance Global Partners’ analyst Aaron Grey highlighted the extensive array of studies supporting the rescheduling recommendation, suggesting a positive outlook despite the concerns raised.
* Photo: Benzinga edit with Billion Photos and Yarygin by Shutterstock *
