**Why it matters:**
Colorado Governor Jared Polis has sent a letter to President Joe Biden in support of the U.S. Department of Health and Human Services’ (HHS) recommendation to reschedule cannabis from a Schedule I substance to a Schedule III substance. This move could have significant implications for cannabis businesses, including access to banking and the reduction of criminal penalties.
**What they are saying:**
Polis praised Biden for leading an administration that is aligning with scientific evidence regarding cannabis. He urged the president to consider additional steps like supporting access to banking and reducing criminal penalties for possession and distribution of cannabis. Polis also highlighted the need for Internal Revenue Code Section 280E reform and access to traditional banking services to ensure the success of state-regulated cannabis marketplaces.
**The big picture:**
Rescheduling cannabis could be a landmark accomplishment for Biden’s presidency and could save jobs and generate tax revenue for states. Over three-fourths of states have legalized medicinal marijuana, and more than 20 have legalized marijuana for adult use. Polis emphasized the importance of federal policies that promote a legal, safe, regulated, and age-verified system for cannabis.
**What to watch:**
The Drug Enforcement Administration (DEA) will now review the recommendations provided by HHS, but it is unclear how long this process will take or how the DEA will respond. The outcome of the DEA’s review will determine whether cannabis is rescheduled to a Schedule III substance.
**Your take:**
Rescheduling cannabis to a Schedule III substance would be a significant step forward in aligning federal policies with scientific evidence and the legalization efforts of many states. It could provide greater opportunities for cannabis businesses, promote public health and safety, and generate economic benefits. The DEA’s response to the HHS recommendations will be crucial in determining the future of cannabis regulation in the United States.
