In the Media
What Will DEA Rescheduling Mean for Cannabis in Alabama? Experts Weigh in.
Read Time: 1 minMember Perry Salzhauer and Associate Daniel Shortt (Seattle) discussed the impact of rescheduling cannabis with the Birmingham Business Journal in an article published May 14, 2024.
Q: Many cannabis businesses have found it difficult to obtain financing from banks before this development. Will this make it easier for them? Why and how, if so?
A: Rescheduling is unlikely to make it any easier for cannabis businesses to obtain financing from banks. This is because state-authorized marijuana business operations will remain illegal under federal law, and the Controlled Substances Act(CSA) and the Food, Drug and Cosmetic Act (FDCA) specifically, as those businesses will continue to be selling products that have not been approved by the Food and Drug Administration (FDA) and therefore authorized by Schedule III of the CSA. As a result, all of the issues and concerns associated with banking and financial services in general for the cannabis industry will remain entirely unchanged.
Q: Will this impact laws or the process of licensing cannabis businesses in Alabama at all? Why or why not?
A: Not directly. Cannabis, or marijuana as it is defined under federal law, is moving from Schedule I to Schedule III of the CSA and will allow for the development of marijuana-based prescription drugs.
Read more (subscription required).