The cannabis industry is bracing for potential shifts in federal policy as a new administration takes office. While the industry has seen significant growth and increasing state-level legalization in recent years, it remains in a precarious position due to the conflict between state and federal laws. The possibility of changes in federal policy has sparked both hope and concern among industry stakeholders.

Current Landscape

• Cannabis is legal for medical use in 36 states and for recreational use in 15 states, plus Washington D.C.
• At the federal level, cannabis remains a Schedule I controlled substance, creating legal and financial challenges for the industry.
• The industry has operated under a policy of federal non-interference in states with legalized cannabis, as outlined in the Cole Memorandum (rescinded in 2018) and subsequent congressional protections.

Potential Policy Changes

1. Decriminalization: There is speculation about potential federal decriminalization of cannabis, which would remove criminal penalties for possession and use.
2. Rescheduling: Moving cannabis to a lower schedule in the Controlled Substances Act could ease research restrictions and potentially allow for medical use at the federal level.
3. Banking Regulations: The SAFE Banking Act, which would provide protections for financial institutions