Federal Cannabis Legalization and Reform: Where Are We in 2024?
The US cannabis reform landscape has been slow-moving, but there are still several opportunities for change in the remainder of 2024. One of the most significant developments is the DEA’s pending decision to reclassify cannabis as a Schedule III drug, which could have significant implications for the industry.
To make this decision, Attorney General Merrick Garland must provide three findings: cannabis has a currently accepted medical use, it has a relative abuse potential, and it has physical and psychological dependence liability. Garland and DEA officials are also considering the US’s international treaty obligations under the Single Convention on Narcotic Drugs, 1961, which some argue is a reason to keep cannabis listed as a Schedule I drug.
Cannabis was once a legal cross-border import, but its political climate changed in the early 20th century due to immigration and propaganda. Federal cannabis prohibition dates back to the 1937 Marihuana Tax Act, which outlawed non-medical cannabis use and regulated importation, cultivation, and distribution.
Despite this prohibition, many states have legalized medical or recreational cannabis, and 38 states have legalized medical cannabis. In 2023, 20 states with operational adult-use retail markets sold around $23 billion in cannabis, according to government data.
There are several federal reform prospects in 2024, including the DEA’s rescheduling decision, the SAFE Banking Act, and the Farm Bill’s reauthorization. The SAFE Banking Act would provide safe harbor to financial institutions serving the cannabis industry, while the Farm Bill could regulate hemp-derived products containing intoxicating amounts of THC.
Three federal legalization bills are also pending, including the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, the States Reform Act of 2023, and the Cannabis Administration and Opportunity Act (CAOA). The CAOA, reintroduced by Senators Schumer, Wyden, and Booker, would fully deschedule cannabis at the federal level.
While cannabis reform is not easy, especially in a divided government, there are still opportunities for change in 2024.
