The cannabis industry is set to change after Biden’s cannabis reform announcement

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The expungement order coming from POTUS will impact how the market moves

Last Thursday, the marijuana industry took a positive turn thanks to several weighty decisions shared by President Joe Biden. The White House announced a request to officially review how cannabis remains on the Controlled Substances List. This news undoubtedly provided plenty of reasons for the collective backbone of the industry to be excited, in part because of what it could mean on the financial front.

Michael Correia, a lobbyist for the National Cannabis Industry Association, was one of the first to show his enthusiasm for Biden’s decisions. He said, “We’re just touching the surface on this. It’s only going to get bigger. How truly historic this was.”

Many positive long-term effects may be evident in the cannabis industry if the current administration lowers or removes cannabis from Schedule I altogether. It would open many doors to solutions related to financial problems, such as the 280E provision of the federal tax code, which prohibits standard business deductions.

If the decision comes to fruition, it could attract much more investment money, banking access would expand, and it will allow companies to go public on major stock exchanges. To achieve this, it is not enough for the drug to be reduced to Schedule II or III. It is necessary that the plant be completely removed from the list of controlled substances.

For now, Correia says the benefit will be reflected in a political push for the Safe Act in the Senate. Senator Cory Booker recently said the measure could pass in the lame-duck session after the midterm elections next month.

“One thing is clear: We still need Congress to pass the SAFE Banking Act,” US Cannabis Council CEO Khadijah Tribble wrote in an email to Green Market Report. “Simply moving cannabis down the schedule won’t address the banking problem that is vexing our industry.”