The federal descheduling of marijuana would allow companies to take tax deductions, have access to banking services, and list on the U.S. stock market.
For the past month, this column has focused on the federal legalization of marijuana, which continues to be at the forefront of lawmakers’ agenda. A few days following my most-recent article, a 163-page discussion draft legislation intended to end the decades-long federal marijuana prohibition was unveiled by its lead sponsors, Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ). Here is a 30-page summary of the discussion draft for those of you who prefer CliffsNotes.
The draft bill, formally known as the Cannabis Administration and Opportunity Act (CAOA), was introduced “to spur a robust conversation among stakeholders” to inform members of Congress as they craft the final legislative proposal.
The official purpose of the draft bill is “to decriminalize and deschedule cannabis, to provide for reinvestment in certain persons adversely impacted by the War on Drugs, to provide for expungement of certain cannabis offenses, and for other purposes.”
The federal descheduling of marijuana would allow companies to take tax deductions, have access to banking services, including maintaining bank accounts and applying for loans (note that the discussion draft does not specifically mention banking, but its provisions ending federal prohibition would automatically remove any penalties with which financial institutions are currently faced), and list on the U.S. stock market.
Published: July 31, 2021
Founder & Interim Editor of L.A. Cannabis News