Illinois cannabis business owners are celebrating the federal government's anticipated reclassification of marijuana as a medicine with therapeutic benefits and reduced misuse potential.
The Drug Enforcement Administration (DEA) is planning to move marijuana from Schedule I to Schedule III, according to the Associated Press. This change would place marijuana in the same category as codeine, ketamine, steroids, and testosterone rather than heroin and LSD, which are much harsher medications.
Currently, both medicinal and recreational use of cannabis are allowed in Illinois.
Reclassification Might Help Firms Acquire Loans, Deduct Business Expenditures
The Chicago Tribune notes that this move may have far-reaching consequences for the cannabis industry, making it simpler for companies to secure loans and providing them with more tax breaks.
Reese Xavier, CEO and managing partner of cannabis firm HT23 Growers, expressed his optimism that this would pave the way for financial institutions to provide cash, particularly to smaller companies. He added that customers may see better pricing as a result of more competition and cheaper access to finance.
This modification should facilitate further study on the impacts of cannabis and may aid in the industry's passage of the SAFER Banking Act, which would improve access to financial services and lessen the need for cash. Notably, federally licensed banks are wary of doing business with illegitimate entities.
Verano, a Chicago-based cannabis firm operating in several states, said in a statement that it anticipated saving $80 million due to the ability to deduct operational expenditures. It also predicted that the market will see an increase in suppliers, new payment options for consumers, and a softening of attitude toward listing cannabis firms on the stock exchanges of the United States.
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Others Worry Over Decision's Negative Effects
However, several others voiced concerns about the potentially detrimental consequences of the change.
Kevin Sabet, president and CEO of the non-profit Smart Approaches to Marijuana, said public health authorities, law enforcement, and specialists in substance abuse treatment were against the move. He contested the decision on the grounds that the raw plant had never been tested for safety and effectiveness and that using it would only serve to promote addiction and increase the likelihood of psychosis, depression, and IQ decline.
And, although he applauded the shift, Scott Redman of the Illinois Independent Craft Growers Association warned that it may have unforeseen repercussions, such as more federal oversight.
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