Jeff Mason and Pratik Jain
WASHINGTON (Reuters) – The U.S. Justice Department on Tuesday moved to make marijuana use a lesser federal crime, taking a step to reclassify the drug from a category that includes heroin, in a change that, once completed, will shake up cannabis policy across the country. all over the country. .
Cannabis stocks rose following the news. Shares of marijuana companies such as Tilray (NASDAQ:), Trulieve Cannabis (OTC:) Corp, Green Thumb Industries rose more than 20% in afternoon trading.
The Justice Department, which oversees the Drug Enforcement Administration, recommended classifying cannabis as a so-called schedule three drug with a moderate or low potential for physical and psychological dependence, rather than a schedule one, which is reserved for drugs with a high potential for abuse, two sources confirmed to Reuters.
Penalties for using Schedule 3 drugs are less severe under federal law.
The proposal is sent to the White House Office of Management and Budget for review and finalization, the sources said, but cautioned that a public comment period and regulatory process still await.
President Joe Biden, a Democrat who is running for re-election in November, initiated a reclassification of the drug in 2022, fulfilling a campaign promise that was important to members of his political base on the left.
The drug currently falls under the DEA class, which includes heroin and LSD. He will be moved to a group containing Tylenol with codeine and ketamine.
GAP BETWEEN STATE AND FEDERAL LAWS
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Reclassifying marijuana represents the first step toward narrowing the gap between state and federal cannabis laws. The drug is legal in some form in nearly 40 states.
While changing the drug schedule does not make it legal, it will open the door to further research and medical use, leading to reduced criminal penalties and increased investment in the cannabis industry.
The DEA declined to comment.
The Justice Department’s move comes after the Department of Health and Human Services recommended rescheduling cannabis in August as part of a review ordered by Biden.
Public support for the legalization of marijuana in the United States has increased significantly over the past few decades, reflecting the growing acceptance of cannabis for recreational and medicinal purposes.
Colorado and Washington became the first states to legalize marijuana for recreational use in 2012.
If marijuana classification were simplified at the federal level, it could allow major stock exchanges to list cannabis businesses and potentially allow foreign companies to begin selling their products in the United States.
Although many states have legalized the use of cannabis for medical or recreational purposes, its illegal status under US federal law has forced most major banks to deny their services to cannabis-related businesses.
Biden and Vice President Kamala Harris are seeking to win support from the black community in their re-election bid against former President Donald Trump, a Republican.
According to the American Civil Liberties Union, black Americans and communities of color have been disproportionately impacted by marijuana drug enforcement efforts for decades: blacks are 3.6 times more likely to be arrested for marijuana possession than whites, despite similar consumption indicators.
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According to the Pew Research Center, black and white Americans used marijuana at roughly comparable rates in 2020, but blacks accounted for 39% of all marijuana arrests in the US, despite making up only 12% of the US population at the time.